TERP tripled the revenue for the second quarter in a row closing in on 50.000 USD. The growth results from implementing new contracts within maritime education in the Philippines. The company expects to further increase the value of these contracts by about 50 %.
Maritime education consists of two major programs: nautical sciences and marine engineering. Most maritime schools and universities offer both programs, and TERP's contracts include deliveries to the entire maritime education. However, thus far, we have only onboarded nautical students. Pending learning resources on marine engineering, TERP will onboard the remaining students by the start of the next school year in September 2022.
The strong growth in revenue in Q3 and Q4 came from multiple new contracts TERP landed earlier this year. The company hired its first sales representatives in October 2021, starting systematic sales. We do not expect the work of the sales team to materialize significantly in revenue until Q3 and Q4, as our largest market segment is within education. Schools and universities tend not to implement new services in the middle of a school year.
ARR (Annual Recurring Revenue) is our essential KPI (Key Performance Indicator) to monitor sales performance. TERP's ARR passed 300.000 USD in December 2021, and we target to reach one million USD by the end of 2022.
TERP's essential KPI (Key Performance Indicator) to monitor sales performance is ARR (Annual Recurring Revenue), as it gives us much faster data than revenue. Internally we have more specific metrics giving us even quicker feedback on sales performance. We continuously improve our sales systems based on the data we collect. ARR is the annual value of all our recurring contracts when fully implemented. The ARR passed 300.000 USD this month from sales done by the founder team. Systematic sales by the new sales team will start impacting the ARR in Q1 2022, and TERP targets to reach one million USD in ARR by the end of next year.