CoinMeta data: ARR (annual recurring revenue) and revenue are two different financial indicators among AI and SaaS companies. ARR is a forward-looking operational indicator that estimates the annual value of recurring subscriptions or contracts, while revenue is the actual amount recognized by the company during a specific fiscal period. Privately held companies with rapid growth often emphasize ARR or annualized revenue growth rates before investors see the audited annual financial statements. Stripe defines ARR as the component of recurring revenue over a one-year period, which usually includes subscriptions and other predictable contract revenues. The calculation of ARR is relatively simple; for example, if a company has $100 million in recurring subscriptions per month, its ARR would be $1.2 billion. ARR generally does not include one-time implementation fees, consulting projects, and other non-recurring revenues. Companies are also increasingly using similar indicators as corporate clients sign longer-term contracts. In contrast, revenue is recognized according to accounting standards, typically when customer obligations are fulfilled.