What is Recurring Revenue?
Recurring revenue is income a business expects to receive on a regular, predictable basis from subscriptions, contracts, or repeat purchases. It is highly valued because of its visibility and stability.
How It Works
- Identify subscription, retainer, or contract-based revenue streams.
- Track MRR (monthly) and ARR (annual) over time.
- Monitor churn and net retention to forecast growth.
Saudi Context
Saudi SaaS startups raising under Vision 2030 emphasize ARR as the headline metric. ZATCA e-invoicing makes subscription revenue easy to evidence and audit.
Example
A Saudi accounting SaaS firm signs 100 SMEs at SAR 300/month each — ARR of SAR 360,000 and a churn target below 3% per month.