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FirstSounding

Recurring revenue, rebuilt from the bottom.

ARR is a metric, not an accounting standard, and every company defines it a little differently. We rebuild it from billing and contract data to establish which revenue is recurring.

Illustrative bridge. Figures invented.

What the module checks

01

ARR and MRR rebuild

Recurring revenue reconstructed from invoices, subscriptions, and contracts, compared with the figure in the CIM. One-time fees, pilots, and services counted as recurring are separated out.

02

Retention and expansion

Gross and net revenue retention by cohort, rebuilt from customer-level data rather than reported as a single figure.

03

Contract terms

Termination for convenience, price-lock clauses, most-favored-customer terms, change-of-control provisions, and auto-renewal provisions that are conditional in practice.

04

Customer concentration

Revenue from the largest customers and the renewal dates of those contracts.

05

Pipeline and bookings

Bookings and pipeline claims compared with signed contracts and historical conversion.

06

Capitalized development

Development costs moved off the income statement, and their effect on EBITDA.

07

Tech-enabled services

For services businesses with a software layer, the true split between software revenue and labor-driven revenue, and the margin profile of each.

What it gives your team

A recurring revenue figure you can underwrite, and an early read on whether the LOI multiple assumes software economics the business does not demonstrate.

Discuss a transaction under LOI.

Share the sector, the deal size, and the end of exclusivity. We respond within one business day with an assessment of fit and the proposed scope of the report.