Definition
Annualized Recurring Revenue – The most recent period's recurring revenue scaled to a full year (a month's recurring revenue times twelve, or a quarter's times four). It is a run-rate snapshot of where recurring revenue stands today, not revenue that has been recognized, and each company decides what counts as "recurring," so it is only comparable within one company's own disclosures. Alibaba quotes a run rate for its AI-related products on this basis (quarterly revenue times four) and an ARR target for its model-as-a-service» business. Found In: Earnings presentation or call (operating metric, not a financial-statement line item) Formula:
ARR = Latest Month's Recurring Revenue × 12 (or Latest Quarter's Recurring Revenue × 4)