# ARR

### How we get these data

ARR data is gathered from Shopify API App Events to support long-term financial planning and strategic decision-making.

### Understand the dashboard

ARR (Annual Recurring Revenue) is the recurring revenue value annualized. This is an extended version of MRR to look at the long-term financial picture.

**Note:**

* For Monthly Subscription Plans: Usually multiplied by 12 to convert to annual value.
* Includes One-time charges or Usage charges but not multiplied by 12.
* This is projected revenue under the ideal scenario that all paying users will use the app until the end of the billing cycle.

#### 1. Annual Run Rate 

The line chart visualizes the total ARR trend over your selected time period (Day, Week, Month), with a percentage comparison against the previous 31-day period, highlighting the overall growth of your business scale. You can view the chart in either Combined/Separate mode.

<figure><img src="/files/msJWWD2Ns0eAire3iAfh" alt="" width="563"><figcaption></figcaption></figure>

The breakout table details the daily fluctuations that contribute to this trend, categorizing movements into **Active** revenue gains (including **Retained**, **Expansion** (upsells), and **Contraction** (downsells)), and **Churned** revenue losses to calculate the net **Change** in ARR.

The panels offer a quick historical comparison of your current ARR against performance benchmarks from 1, 3, 6, 12, and 24 months ago to track long-term scaling momentum.

<figure><img src="/files/9VM677Wbs2z3BqBS2JSk" alt="" width="563"><figcaption></figcaption></figure>

#### 2. Plans&#x20;

This table breaks down your annual revenue by specific plan levels, showing the number of active customers and the total ARR contribution for each subscription tier.

<figure><img src="/files/Q5WZP1TGcdZbg1t0KilN" alt="" width="563"><figcaption></figcaption></figure>

### How ARR data can benefit you

* **Company Valuation:** ARR is the primary metric used as a scale measure when raising capital, seeking investments, or determining the market value of your company.
* **Long-term Strategic Vision:** This metric is ideal for high-level reporting (C-level) and annual business reviews, as it filters out minor monthly fluctuations to show the true trajectory of the business.


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