2 ms·
Extrapolating from a few months to a full year and calling it Annual Recurring Revenue is one of modern startup valuation gimmicks that I cannot not laugh at.
by necovek 6mo ago
Extrapolating from a few months to a full year and calling it Annual Recurring Revenue is one of modern startup valuation gimmicks that I cannot not laugh at.
Sometimes it helps to go back to the basics to understand company performance: money in, money out?
- goosejuice 6mo agoSure, but early profit rarely tells the whole story. They already sell to half the fortune 500 and enterprise is sticky. Gains in efficiency, like a discount on data center access, can be remarkable for their profit outlook.
- ej88 6mo agoin these cases arr = annual run rate, commonly used when your revenue is either going vertical (cursor - good) or your revenue is choppy and full of short term projects (mercor - bad)