New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals
Kellblog
AUGUST 7, 2019
Moreover, it jibes with my definition of ARR which is: End-of-quarter ARR / 4 = next-quarter subscription revenue, if nothing changes [7]. Now, personally, I don’t want to be financing my customers when I’m at a high-burn startup, so I’m going to try and avoid deals like this. And I’d be OK with that treatment.
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