The EU Just Killed ARR

14 hours ago

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The EU Data Act, effective September 2025, makes SaaS contracts with EU customers 'cancel anytime' with two months' notice.
ARR (Annual Recurring Revenue) may no longer be a reliable metric in Europe due to the lack of contractual lock-in.
SaaS companies can no longer rely on discounted long-term deals to ensure revenue stability.
Involuntary churn is a new risk, where subscriptions may end due to expired credit cards or missed renewals.
To survive, SaaS companies must focus on customer satisfaction, grace periods, and resilient renewal processes.
Retention under the new rules requires active management and operational resilience rather than contractual enforcement.

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