ARR is not revenue: the difference in one example

ARR is a snapshot: the yearly value of your active subscription contracts on one day. Revenue is earned over time as you deliver the service, so a £10,000-a-month contract signed on 1 October gives £120,000 of ARR by 31 December but only £30,000 of revenue that year.

Illustration. Conditions apply. Not tax advice. Source: PTC and Pure Storage SEC filings.

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