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How can you talk about ARR if you only look at 1 year?
by OptionOfT 1y ago
How can you talk about ARR if you only look at 1 year?
- datadrivenangel 1y agoIt's useful for financial planning. Less useful for overall financial reporting given how volatile it is.
- OptionOfT 1y agoI should've been more clear. How can you talk about ARR if you only have 1 year? How do you know it's recurring? What data do you have (historic) that makes you believe the revenue will happen again? Is this based on signed contracts etc so you have some guarantees?
- dcre 1y agoThe "annual" just means that the unit of time is a year. It doesn't mean that it is recurring annually. You can call it Annualized Monthly Recurring Revenue if it makes you feel better.