CARR

Metric Name

Contracted Annual Recurring Revenue

Metric Family

Bookings

Metric Definition

The annualized revenue that will be generated from all active contracts, including those not yet started but already signed.

Formula

CARR = ARR + Signed Contracts - Expected Churn. CARR = ARR + New Subscriptions + Expected Upsells - Expected Downsells - Expected Churn.

Application

CARR provides a forward-looking view of revenue, helping companies forecast growth, plan resources, and make strategic decisions. It's a more comprehensive metric compared to ARR (Annual Recurring Revenue) since it includes revenue from contracts that are signed but not yet active, offering a more holistic picture of the company's future financial health.