A guide for finance leaders to maneuver ARR complexities
SaaS business models have evolved significantly over the last few years. Despite its increasing adoption, accurately defining ARR (Annual Recurring Revenue) remains challenging due to nuances in revenue recognition and business models.
Challenges include variability in contracts, predictability issues, and managing disparate data sources.
The idea of this paper is to break down the complexities that goes in calculating ARR and provide a set of recommendations around choosing the right ARR measuring methodology given the different types of usage-based pricing categories.
