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MRR and ARR are gross, not net revenue. It might be misleading but that's how all other SAAS companies use the metrics, too.
by mtmail 3y ago
MRR 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.