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Software Buyout Lingo Explained

Private Equity Funcast

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How to Calculate Your Annual Recurring Revenue

Parker Gell: There's two concepts that people talk about a lot with revenue and software businesses. The first is MRR, the second ARR. And they are very similar. They kind of go hand in hand. So going forward for the next 12 months based on the recurring customers I have, what would I expect to make if we like played this out for the next year? Parker Gell: In my head snowball makes no sense because in my head, snowballs go down. But I mean, I think it's the waterfall,. It looks like a waterfall in Excel, basically. Right?"

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