I used to work for a private tech company (not in finance) but had a view into the revenue we were doing and was constantly confused by the aggregate ARR number.
This seems to happen not just with ARR but a whole bunch of metrics used to prove ROI or value of a company. And that's before we get into the craziness of WeWork, Enron, and a bunch of other orgs over the years.
I think just knowing how to do basic research on a balance sheet is such a key skill to have.
This is very interesting considering ARR is the bragging metric of choice of the B2B world. Basically, you can have completely different absolute numbers for two companies reporting the “same” ARR. Crazy.
CJ, thoughts on how we could deal with transactional revenue? An example of this is a client pays me x$ based on the times it uses a service.
I used to work for a private tech company (not in finance) but had a view into the revenue we were doing and was constantly confused by the aggregate ARR number.
This seems to happen not just with ARR but a whole bunch of metrics used to prove ROI or value of a company. And that's before we get into the craziness of WeWork, Enron, and a bunch of other orgs over the years.
I think just knowing how to do basic research on a balance sheet is such a key skill to have.
This is very interesting considering ARR is the bragging metric of choice of the B2B world. Basically, you can have completely different absolute numbers for two companies reporting the “same” ARR. Crazy.
I never thought about the definition. This is so interesting. Wouldn’t those doing quarterly * 4 be the same as MRR * 12? 🤔