In episode #293, Ben dives into Contracted Annual Recurring Revenue (CARR)—a once obscure metric that's now becoming a standard in financial dashboards and valuation discussions. Ben explains how CARR differs from ARR, breaks down the formula, and shares how it’s being used in real-world enterprise SaaS settings. He also shares why defining ARR is more complicated than it seems—especially with variable and usage-based revenue models.

Key Topics Covered

• What is CARR (Contracted ARR) and how it differs from traditional ARR

• Why CARR is becoming more widely used in valuation discussions and financial reporting

• The CARR formula

• How Ben approaches CARR discussions with CFOs, consultants, and within The SaaS Academy

• The evolving complexity of ARR definitions, especially in hybrid subscription/usage models

Resources Mentioned

• Blog: How to Define ARR in Subscription & Usage Models

• SaaS Academy – Courses & Community

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