Annualized Recurring Revenue (ARR)

Measure of absolute growth in Annualized Recurring Revenue.

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  • ARR growth across SaaS business models reveals a growing divergence in the impact of Artificial Intelligence (AI)

  • Self-Serve SaaS is facing AI-led commoditization, with core features becoming easier to replicate. This is leading to market disruption, pricing pressure and flattening growth post-2021.

  • Serviced SaaS, on the other hand, is seeing AI act as a growth catalyst, enabling deeper insights, automation, and new revenue streams — driving a return to ARR momentum.