What is ARR (Annual Recurring Revenue)?
What is ARR (Annual Recurring Revenue)?
ARR is the total value of recurring revenue normalized to an annual rate. If you have 120,000. This metric shows your annual revenue potential from existing subscriptions.
What is MRR (Monthly Recurring Revenue)?
What is MRR (Monthly Recurring Revenue)?
MRR is your total recurring revenue for a single month. It’s ARR divided by 12, but calculated fresh each month to account for new subscriptions, churn, and upgrades.
What is CARR (Committed Annual Recurring Revenue)?
What is CARR (Committed Annual Recurring Revenue)?
CARR includes both active subscriptions and signed contracts that haven’t started yet. It represents committed revenue that will be recognized in the future.
What is the MRR waterfall methodology?
What is the MRR waterfall methodology?
The waterfall breaks down month-to-month revenue changes: starting MRR, new customers added, upgrades, downgrades, churn, and ending MRR. This shows exactly where revenue is growing or shrinking.
What's the difference between revenue and invoices?
What's the difference between revenue and invoices?
Revenue is recurring billing (subscriptions). Invoices are one-time or ad-hoc charges. Ari tracks both separately, but can show combined metrics for a total revenue picture that adds subscriptions and one-time invoices together.
What is the revenue recognition waterfall, and is it different from the MRR waterfall?
What is the revenue recognition waterfall, and is it different from the MRR waterfall?
Yes, they’re different. The MRR waterfall tracks recurring-revenue changes month to month. The revenue recognition waterfall shows how invoiced amounts are recognised as revenue across future accounting periods, and covers Stripe, QuickBooks, Xero, and Sage.Combined views work too. If you invoice through both QuickBooks and Stripe, the waterfall reflects both, including teams who previously lost that view when they migrated to QuickBooks. You can filter by product on both the invoice and revenue recognition waterfalls.
Is the revenue data the same as in Stripe?
Is the revenue data the same as in Stripe?
Yes, the underlying data is the same. Where the two differ, it’s presentation, driven by information LedgerUp holds that Stripe does not.An invoice marked Payment pending is the clearest example: LedgerUp hides it from AR aging because you’ve told us money is on the way, while Stripe still shows it outstanding because no payment has been recorded yet. Neither is wrong.