Comment by ToValueFunfetti
2 months ago
Taking my paycheck and multiplying would be an excellent measure of my yearly salary. I don't understand how that analogy is meant to imply that the approach is nonsensical.
2 months ago
Taking my paycheck and multiplying would be an excellent measure of my yearly salary. I don't understand how that analogy is meant to imply that the approach is nonsensical.
because your paycheck comes only one day per month, so that estimate would bee too high by a factor of 30
But then the analogy doesn't work at all? ARR isn't calculated by multiplying revenue to 30 years and then saying that that's 1 year's revenue; what criticism is being made here?
they pick some month with the higest revenue. Unlike your income, a business makes different amounts each month based on some trends and many other factors, and they can varry wildly.