# ARR

Learn what the ARR chart measures and when to use it.

<img alt="ARR chart" src="__img0" />

What it shows [#what-it-shows]

ARR shows annualized recurring revenue from subscriptions. It normalizes subscription revenue into an annual view.

How to use it [#how-to-use-it]

Use ARR to understand your recurring revenue run rate and how it changes over time. It is helpful when you want a longer-range view than monthly movement can provide.

Good to know [#good-to-know]

ARR is an annualized metric, so use it for directional recurring revenue trends instead of short-term cash timing.