Ann: Quarterly Activities & Appendix 4C Cash Flow Report, page-3

the ARR is not really ARR for a deal product because you don’t know the churn % which is not disclosed. What they are offering for subscription is instead of a 4-6 months data room you receive a 12 month offer at a 40% discount or whatever which makes it attractive versus a short tenor product.

the ARR metric was conceived at a time the market highly valued recurring revenue software businesses.

For certain customers (PE?) the ARR is real because they might be constantly opening and closing data rooms all year round but for most M&A professionals they probably want to align a room to the tenor of a specific deal.

the non-deal ARR is far more meaningful.

Like you, ultimately I’d rather spend my time guessing the FCF for this company in 3-5 years. No self-respecting institution would value this co on an ARR multiple.