ARR

Annual Recurring Revenue. The normalized yearly value of all active subscriptions.

Frequently asked questions

How is ARR calculated when contracts have ramp deals?
Use the steady-state annualized value. A 2-year contract that starts at $50K and ramps to $150K should book ARR at the $150K steady-state for forecasting, with a separate note on the ramp.
What ARR per employee is healthy in 2026?
Top-tier SaaS hits $400K to $600K ARR per employee at scale. The median sits around $200K to $300K. Below $150K, the business is over-staffed relative to revenue or under-priced relative to value.
What's the difference between ARR and revenue?
ARR is a snapshot of annualized recurring revenue from active contracts. Recognized revenue is what actually hits the income statement under accounting rules. The two diverge during ramps, churns, and pre-paid contracts.
Should you report new ARR, expansion ARR, and churned ARR separately?
Yes. Investors and operators both need the breakdown to understand growth quality. Aggregating them into one ARR number hides whether growth came from new logos or expansion.
How does Landbase contribute to ARR growth?
By compressing the time from list build to qualified pipeline. Most customers see SDR productivity rise 20 to 40 percent, which translates directly into new ARR per rep at the same headcount.