A founder asked us about measuring recurring revenue when some of their customers are on monthly plans with no long-term commitment.

Can you still use ARR if some of your customers are monthly and can cancel at any time?

Yes and thats based on experience. Monthly customers can still contribute to ARR.

But I'd be very careful calling it "predictable" revenue if half your customers can disappear next month.

That's the bit people seem to miss. ARR is a snapshot, not a promise that they'll actually stay for 12 months.

Exactly! I'd show ARR alongside churn and retention. Otherwise the number doesn't tell you much.

Yep. £500k ARR with terrible retention isn't the same business as £500k ARR with customers sticking around.

I'd actually question why founders get so obsessed with the ARR label anyway 😂

If an investor asks what's happening with revenue, I'd rather show the actual customer behaviour.

Agreed. If the metric needs a 10 minute explanation, it's probably not the metric I'd lead with.