New Sales recurring revenue (ARR or MRR) is recurring revenue from new customers acquired in a period. It’s extremely important to track New Sales, and signing net new customers is the main way SaaS companies grow. A sign of a well performing company is when New Sales ARR steadily grows over time, rather than remaining flat, as that means the company may be able to retain its growth rate as it scales.
New Sales = the sum of ARR from new customers in a period
New Sales is also the revenue metric most closely tied to the performance of the sales team. It is a key input for calculating CAC Payback and other measures of sales efficiency. How sales and marketing dollars spent translate to New Sales is a big indicator of how repeatably a company can grow.