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ARR Can Hide Financial Fragility
Recurring revenue has become one of the most celebrated metrics in modern technology businesses. Predictable revenue streams make forecasting easier, improve valuation models, and signal stability to investors. At first glance, ARR appears to solve one of the most difficult problems in business: revenue visibility. However, recurring revenue does not necessarily mean recurring durability. Many recurring revenue models still depend on underlying cost structures that scale unpr
Robert Rock
Mar 16
Pricing Is the Financial Architecture of a Product
Pricing is often treated as something that can be finalized after the product is built. Once the value is clear, the pricing model can be adjusted to match. In reality, pricing decisions shape the entire economic structure of the product. Usage-based pricing changes how infrastructure risk behaves. Subscription pricing changes how revenue stability develops. Transaction pricing ties revenue directly to market activity. The pricing model determines how revenue responds to grow
Robert Rock
Mar 11
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