3 ms·
As noted in other comments, the $720 of recognized revenue is off and should instead be $60. Assuming $10 of ARR is added each month: > y = 10x where y = ARR
by molsongolden 6y ago
As noted in other comments, the $720 of recognized revenue is off and should instead be $60.
Assuming $10 of ARR is added each month:
> y = 10x where y = ARR and x = time in months
needs to instead be
> y = (10/12)x where y = MRR and x = time in months
ARR is increasing 10 per month but MRR is increasing 10/12 per month.
The height of the triangle is 10 at the end of the year since the height is MRR.