the ambiguity of ARR

this blog in a Tweet ARR should mean "annual[ised] recurring revenue" but it is getting bastardised in a chase for flashy metrics. Don't get dragged into the nonsense or you'll lose credibility with the investors you actually want. what is ARR?The proper meaning of ARR is "annual[ised] recurring revenue". Each one of those three words is important, so let's take them one by one. annual[ised]To annualise something means to approximate an annual equivalent of a point-in-time number. Most sensibly, it would be taking a monthly recurring revenue number and multiplying it by 12. The logic of doing so is to extrapolate the latest numbers to illustrate what scale the business would be at if it had been operating at its current velocity for the past 12 months (or will continue to operating at its current velocity of the next 12 months). It is particularly useful for fast-growing start-ups because it lacks both the lag of a "last 12 months" revenue figure, and the flakiness of a "next 12…

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