ARR vs ARR. Watch out for this one sly trick.

Pretty good autogenerated cartoon — except that the sign the ref is holding completely misses the important fact that both terms have the same acronym.Anthropic’s boosters are rushing to celebrate their ARR. As they do, be mindful that the acronym ARR can actually mean two rather different things, Annual Recurring Revenue or Annualized Run Rate. (And 65 other things, less immediately relevant.) You might think they are the same, but they are not.What the boosters want you to think of is Annual Recurring Revenue. Annual Recurring Revenue is great; that’s things like subscriptions, which means next year likely to be same as (or better than) this year. Annual Recurring Revenue recurs. Annualized Run Rate, alas, means no...

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