Great article. Love the different definitions used for ARR which also impact down stream metrics such as Gross & Net Revenue Retention when benchmarking firms.
Great overview, see this trip up so many young investors - especially deferred revenue. That piece also means you have a liability to serve (sometimes means extra costs) which creates overhang if growth slows.
Great article. Love the different definitions used for ARR which also impact down stream metrics such as Gross & Net Revenue Retention when benchmarking firms.
Thanks Will! And it’s important for all folks (not just finance) to understand the differences because it impacts the key drivers of the biz
Great overview, see this trip up so many young investors - especially deferred revenue. That piece also means you have a liability to serve (sometimes means extra costs) which creates overhang if growth slows.
Yep. While deferred revenue is kind of a good liability, it’s still an obligation