MRR Or ARR? Making The Right Choice For Your SaaS Company

In this article, we discuss the key differences between Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR) and how to choose the right metric for your SaaS company. Itay Sagie explains that MRR is ideal for tracking short-term growth and customer trends, while ARR provides a long-term view of revenue stability and forecasting. Sagie emphasizes the importance of selecting the right metric based on the company’s business model, sales cycle, and growth stage. By understanding the nuances of both MRR and ARR, SaaS companies can better manage their financial planning and strategic decisions for sustainable growth. 

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