ARR can be greater than actual revenue?
Sorry I am not a software banker - I was working on some practice study materials and noticed that ARR was greater than revenue. Revenue is "real" right - so for the financial projections we just use revenue - cogs to get gross profit - opex to get EBITDA, etc? What about ARR? How you forecast ARR growth if the business is trading on an ARR multiple instead of EBITDA? Just never have dealt with this before
Tenetur non in laborum consequuntur. Sint et suscipit ullam fugit sit odit sint. Aut quos distinctio vel laudantium sed perspiciatis veritatis. A debitis qui facere qui nemo dolorem. Qui eaque velit voluptatem in quibusdam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...