Episode Details

In episode #344 of SaaS Metrics School, Ben Murray shares insights from his research into how public tech companies define and disclose ARR in press releases and SEC filings. By analyzing U.S. and global public companies, Ben identifies common ARR “buckets” and explains how different revenue models influence what gets included in ARR.

Rather than debating whether ARR is “dead,” this episode focuses on how companies are actually reporting ARR today—and what private SaaS and AI companies can learn from those disclosures.

Resources Mentioned

• Subscribe to Ben’s SaaS newsletter: https://mailchi.mp/df1db6bf8bca/the-saas-cfo-sign-up-landing-page
  Verint (example of detailed SaaS and AI ARR disclosures): https://www.thesaascfo.com/ai-arr-vs-saas-arr-how-to-define-and-calculate/

What You’ll Learn

• The most common ARR buckets used by public SaaS and tech companies
• How pure subscription revenue is typically defined in ARR
• How companies handle variable revenue such as usage, transactions, and overages
• When managed services revenue is included in ARR—and when it isn’t
• Why purely usage-based companies rarely report ARR
• How revenue models and pricing structures shape ARR definitions
• What ARR disclosures signal to investors and the public markets

Why It Matters

• ARR definitions directly impact how investors interpret growth
• Clear ARR buckets improve transparency and credibility
• Mixed revenue models require thoughtful ARR construction
• Public company disclosures set expectations for private companies
• Poor ARR definitions can confuse metrics, forecasting, and valuation
• Understanding ARR structure helps align finance, accounting, and reporting