Comment by balgg
9 hours ago
There is also ARR which is "annual recurring revenue" and you should know that when people use ARR they usually are just making up numbers based on their current MRR (so lying). I've seen people announce their ARR after running their business for two whole months!
That's not really "lying" — ARR is usually understood as your projected "Annual Run Rate". It's a useful metric, as long as it is understood that it is an estimate.
But, in all honesty, all RR numbers are estimates. MRR is also a "made up number" from a certain point of view: it is not equivalent to cash received every month, because of annual subscriptions, cancelations, etc.
>But, in all honesty, all RR numbers are estimates.
Sure, but I would expect you to have at least one data point or at least near it, before making any estimates for that timescale. I don't see many people make MRR projections based on 2 days of of sales, it's just something I've noticed with startups and ARR.
2 days is optimum, you can fit a nice curve - 1, 2 ... at the current rate we will have 536,870,912 by day 30.
2 replies →
Rather than lying, I think of it more as financial dead reckoning.