Easy questions on arr and run rate

1. ARR only accounts for revenue expected from current customers while RR includes ARR, revenue from new customers in the time frame, upselling, etc. ARR is most similar to Recognized Revenue. It is helpful to know the ARR vs RR when it comes time for the finance department to do their budgeting. For example, worst case scenario they assume their old customers will account for x% of revenue in the next year due to some assumed customer retention % input but RR is a more realistic approach of what they would expect (base case.) RR is commonly used for businesses that are growing because ARR doesn't account for new customers, upsell, etc. In the end, they are very similar and I have seen them used interchangeably. 

2. That is confusing. . .I have seen this happen when companies are assuming a new contract with a larger customer gets put into place in the middle of the year, usually with a term of a few years. This has a strong impact on the business and increases the revenue the company will see for a substantial amount of time. It's basically a way to bump their value up, instead of being valued on their 2023E revenue they want to be valued on their 2023E RR revenue. Also, it is helpful from a budgeting perspective.

3. I assume they would prefer not to be valued on based on their LTM revenue (2021), instead they believe their 2021 RR revenue is a better metric to base the value of their business off of. Also, it is helpful for the CFO to know what they expect their RR to be from a budgeting perspective. Similarly, ARR could be used as the "low" case when projecting out a business while a "RR" is more indicative of the "base case".