CARR Is the New ARR? A SaaS Operator's Guide to This Hot Metric
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Show Notes
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
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What is CARR (Contracted ARR) and how it differs from traditional ARR
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Why CARR is becoming more widely used in valuation discussions and financial reporting
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The CARR formula
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How Ben approaches CARR discussions with CFOs, consultants, and within The SaaS Academy
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The evolving complexity of ARR definitions, especially in hybrid subscription/usage models
Resources Mentioned
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