ARR Is a Vanity Metric. Welcome to Revenue Velocity.

DEV CommunityWednesday, October 29, 2025 at 5:12:15 AM
The article discusses the limitations of Annual Recurring Revenue (ARR) as a metric for evaluating company health. It presents two companies with identical ARR and growth rates but highlights that this data alone doesn't reveal which company is a better investment. This matters because it challenges investors and stakeholders to look beyond superficial metrics and consider deeper indicators of business performance.
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