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
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