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Dalton Caldwell

10/23/24

@ Y Combinator

Annual Recurring Revenue (ARR) is the revenue a company expects to receive annually from its customers, typically through subscription contracts, and it's important to ensure that this revenue is indeed recurring.

Video

Starting A Company? The Key Terms You Should Know | Startup School

@ Y Combinator

Starting A Company? The Key Terms You Should Know | Startup School

10/23/24

Related Takeaways

Macy Mills

05/17/25

@ a16z speedrun

Monitor annual recurring revenue (ARR) and annual contract value (ACV) to assess how well your pricing is working and to show traction to investors.

Tom Blomfield

07/26/24

@ Y Combinator

Aim for monthly or annual recurring revenue to protect your revenue during downturns, as it provides stability until contract renewal discussions.

Macy Mills

05/17/25

@ a16z speedrun

Net revenue retention measures the percentage of recurring revenue from current users, reflecting how well your company retains and expands its user base.

Aaron Epstein

12/16/22

@ Y Combinator

Recurring revenue models are crucial for startup success, as they provide predictable income and higher customer lifetime values.

Tom Blomfield

07/26/24

@ Y Combinator

A good rule of thumb is to maintain a 5:1 ratio between new signed Annual Recurring Revenue (ARR) and total compensation for a salesperson, including commission.

Y Combinator Cast

04/25/24

@ Y Combinator

In the latest batch, 80% of companies had no revenue at the start, but by demo day, their collective annual recurring revenue (ARR) had tripled, showcasing rapid growth and potential.

Todd Jackson

04/11/24

@ Lenny's Podcast

At level four, you should have a team larger than 100 people and be generating over 25 million in annual recurring revenue (ARR).

Paul Buchheit

01/25/25

@ Y Combinator

Startups are now achieving significant milestones, like hitting a million dollars in annual recurring revenue (ARR) within six months, which was previously an aspiration for 12 to 18 months post-batch.

Suhail Doshi

09/12/18

@ Y Combinator

Measuring revenue churn is critical for subscription-based businesses, as it helps you understand how many customers are leaving your service.