ARRey ARR!
Saw Namita call ARR as Annual Revenue Run-Rate. But I know it as Annual Recurring Revenue. I know it's a small thing, but because there are many watching the show (learning in fact, budding entrepreneurs), isn't this incorrect to not give the right full forms of acronyms?
They are both correct. Recurring revenue is relevant for subscription businesses like SaaS. Run rate is basically how much you are likely to make in the full year, based on how much you made this month, this quarter or the year so far. Context matters.
It depends on who is asking the question.
The finance metric is recurring revenue (though NRR & GRR are better measures).
The revenue run rate is a hero number. Has no real meaning and is a feel good metrics for All Hands Calls.
