Annual recurring revenue (ARR) is a key metric in the realm of B2B SaaS. It represents the predictable and recurring revenue generated by a SaaS company from its subscription-based services over a 12-month period. ARR encapsulates the total value of all active subscriptions, providing a stable foundation for financial forecasting and business planning. This metric is paramount in assessing the health and growth trajectory of B2B SaaS businesses, offering insights into customer retention, expansion, and overall revenue stability. By focusing on ARR, companies can gauge the long-term sustainability of their subscription models, enhance strategic decision-making, and demonstrate the appeal of their offerings to potential investors.