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by encoderer 1994 days ago
ARR is always MRRx12.

You're talking about a revenue model.

2 comments

I think the confusion here stems from the terms "annual run rate" and "annual recurring revenue" sharing the same acronym
I admit it’s confusing, but those are exactly the same thing. Have the same formulas.

https://www-priceintelligently-com.cdn.ampproject.org/i/s/ww...

https://www-profitwell-com.cdn.ampproject.org/i/s/www.profit...

> ARR is always MRRx12.

Are you saying that ARR is meaningless for heavily seasonal businesses?

not meaningless, but it is well understood that ARR=MRRx12, so if there's a heavily seasonal business with a big percentage of monthly users, ARR is known to be skewed. In those cases I'd look for YoY growth with prev year.