Clouded Judgement 3.22.24 - ERR vs ARR and the Conundrum of AI Revenue Streams Today
Clouded Judgement
MARCH 22, 2024
Enterprise software businesses strive for 90-95% gross retention (generally the percent of revenue that sticks with you vs churns altogether), with net expansion in the 120%+ range (the aggregate change in expansion - contraction - churned revenue). Namely, retention!! The biggest culprit is describing non recurring revenue as ARR.
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