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"from ground zero to $1M+ Annual Recurring Revenue (ARR) and 25 employees." If it's $1m+ in recurring net revenue (i.e. after the cost of the staff provided to
by tikkun 3y ago
"from ground zero to $1M+ Annual Recurring Revenue (ARR) and 25 employees."
If it's $1m+ in recurring net revenue (i.e. after the cost of the staff provided to customers) then I think it's right to say $1m+, otherwise, it's more like GMV and I think it's misleading to call it ARR.
- mtmail 3y agoMRR and ARR are gross, not net revenue. It might be misleading but that's how all other SAAS companies use the metrics, too.
- tikkun 3y agoI'd prefer non-SaaS companies find a clearer way to represent it. I agree that that's how SaaS companies use it, and I think it makes sense in SaaS (where the gross margins are almost always 80%+). When someone uses a number aimed at 80%+ gross margin businesses for a business with significantly lower gross margins, then it'll mislead people.