According to the article itself, ARR’s definition is clear and strict: annual and recurring. This means that “margin” doesn’t factor in, so I don’t think calling these AI companies’ revenue GMV is all that sensible either.

I do agree the market is eager to conflate run rate and arr, though

AI generated content. Shame they couldn't bother to have a human spend time on this, it's a fair point.

This article is AI slop. There’s a valid point in there somewhere. ARR is heavily misused - YC emeritus Michael Seibel harps on this often. There’s also a lot of nonsense in this article though, due to the AI slop.

Beyond the other comments denouncing it as AI slop, it’s fundamentally wrong. GMV aka marketplace thru-revenue is strictly defined by accounting standards and most tax offices (including the IRS and ATO). It’s not something you just decide to have. One of the core principles of it is that the consumer is aware that the revenue will flow through (eg, if buying something on Etsy/Amazon, that is obvious while others like Uber are more contentious). Using a different model provider is unlikely to pass the test.

This would’ve been a fascinating article if written by an accounting expert but is unfortunately just slop.