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> ARR seems like a interesting concept Yes, it is a meaningful financial measure of actual progress, exactly where progress is most needed for a new company.

> ARR seems like a interesting concept Yes, it is a meaningful financial measure of actual progress, exactly where progress is most needed for a new company. > which hides away the concrete details A normal metric isn't a magic trick. It's just the number it is. > The crucial detail is probably the money being spent Accelerating (not just fast) revenue growth at an astounding rate, with absolute numbers that are enormous for a new company, bonkers for a 2500 employee startup [0], is the crucial "detail". There are lots of companies with deep pockets and compute, making great AI efforts with teams of smart people, that would love to be doing, but are not doing, what Anthropic is doing and doing well. That might be the second crucial detail. [0] https://en.wikipedia.org/wiki/Anthropic https://en.wikipedia.org/wiki/Anthropic

sandeepkd 4mo ago
> A normal metric isn't a magic trick. It's just the number it is. ARR as a number for steady business or public company is much simpler, ARR for companies at this early stage fueled by the motivation for IPO is more than just a number. Its an attempt to convince the market for a certain outcome without revealing the books > Accelerating (not just fast) revenue growth at an astounding rate This acceleration is fueled by somewhat artificial demand (AI mandates by executives across the board, still figuring out the realistic use cases) and subsidized pricing. The expenses matter cause they are the ones which are going to dictate if the business is sustainable or not.
- Nevermark 4mo ago
  > ARR as a number for steady business or public company is much simpler, ARR for companies at this early stage fueled by the motivation for IPO is more than just a number. Its an attempt to convince the market for a certain outcome without revealing the books Of course ARR is simpler for less dynamic companies. Tautology. Of course a PR is a communication to the market. Also a tautology. You are framing functional numbers and behavior as fraudulent because... a newsy PR isn't a formal disclosure? Cynicism is fine. However: accusations should reference some evidence, not just distrust.

sandeepkd 4mo ago

> A normal metric isn't a magic trick. It's just the number it is. ARR as a number for steady business or public company is much simpler, ARR for companies at this early stage fueled by the motivation for IPO is more than just a number. Its an attempt to convince the market for a certain outcome without revealing the books > Accelerating (not just fast) revenue growth at an astounding rate This acceleration is fueled by somewhat artificial demand (AI mandates by executives across the board, still figuring out the realistic use cases) and subsidized pricing. The expenses matter cause they are the ones which are going to dictate if the business is sustainable or not.

Nevermark 4mo ago
> ARR as a number for steady business or public company is much simpler, ARR for companies at this early stage fueled by the motivation for IPO is more than just a number. Its an attempt to convince the market for a certain outcome without revealing the books Of course ARR is simpler for less dynamic companies. Tautology. Of course a PR is a communication to the market. Also a tautology. You are framing functional numbers and behavior as fraudulent because... a newsy PR isn't a formal disclosure? Cynicism is fine. However: accusations should reference some evidence, not just distrust.