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SaaS Metrics

What is Annual Recurring Revenue (ARR)?

·556 words·3 mins
Annual Recurring Revenue (ARR) is the annualized value of subscription contracts. This guide explains how to calculate it, why it matters, and how it differs from recognized revenue.

What is Cost of Goods Sold (COGS)?

·544 words·3 mins
COGS measures the direct cost of producing what you sell. This article breaks down the calculation, compares it to operating expenses, and explains its impact on unit economics.