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CARR Is the New ARR? A SaaS Operator's Guide to This Hot Metric
In episode #293, Ben dives into Contracted Annual Recurring Revenue (CARR)—a once obscure metric that's now becoming a standard in financial dashboards and valuation discussions. Ben explains how CARR differs from ARR, breaks down the formula, and shares how it’s being used in real-world enterprise SaaS settings. He also shares why defining ARR is more complicated than it seems—especially with variable and usage-based revenue models.
Key Topics Covered
What is CARR (Contracted ARR) and how it differs from traditional ARR
Why CARR is becoming more widely used in valuation discussions and financial reporting
The CARR formula
How Ben approaches CARR discussions with CFOs, consultants, and within The SaaS Academy
The evolving complexity of ARR definitions, especially in hybrid subscription/usage models
Resources Mentioned
Blog: How to Define ARR in Subscription & Usage Models
SaaS Academy – Courses & Community
Shoutout Offer
Enjoyed the episode? Leave a 5-star review, send Ben a screenshot, and get a shoutout in his newsletter!
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By Ben Murray
4.6
1111 ratings
In episode #293, Ben dives into Contracted Annual Recurring Revenue (CARR)—a once obscure metric that's now becoming a standard in financial dashboards and valuation discussions. Ben explains how CARR differs from ARR, breaks down the formula, and shares how it’s being used in real-world enterprise SaaS settings. He also shares why defining ARR is more complicated than it seems—especially with variable and usage-based revenue models.
Key Topics Covered
What is CARR (Contracted ARR) and how it differs from traditional ARR
Why CARR is becoming more widely used in valuation discussions and financial reporting
The CARR formula
How Ben approaches CARR discussions with CFOs, consultants, and within The SaaS Academy
The evolving complexity of ARR definitions, especially in hybrid subscription/usage models
Resources Mentioned
Blog: How to Define ARR in Subscription & Usage Models
SaaS Academy – Courses & Community
Shoutout Offer
Enjoyed the episode? Leave a 5-star review, send Ben a screenshot, and get a shoutout in his newsletter!
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