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Aastha

📉 • 2d

ARR vs MRR vs Cash Flow It’s easy to feel like things are going well when your ARR looks strong. Or when MRR keeps ticking up. But if your bank account is saying otherwise, something's off. Breakdown: 1) ARR shows the big picture. Great for investors, not for day to day decisions 2) MRR tracks monthly growth. Helpful for momentum, but not the full story 3) Cash Flow tells you what you can actually spend. And this is where most founders get blindsided If you’re wondering why you’re stressed even with good revenue numbers, it is probably that your cash flow is just misaligned. High ARR doesn’t help if you collect payments annually and burn through cash monthly. That gap between what’s booked and what’s in the bank can kill momentum. Keep an eye on all three. But when it comes to survival, cash flow is king.

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