Description

Every Board, investor, and potential acquirer is asking the same question: How are AI initiatives driving revenue? In episode #315, Ben Murray shares insights from his research into public tech companies and how they’re defining and disclosing AI ARR (Annual Recurring Revenue).

Using Verint as a case study, Ben explains how companies are leveraging AI-driven ARR, tying it to measurable outcomes, and communicating adoption in a way that resonates with both Wall Street and buyers. You’ll also hear how these disclosures may have supported Verint’s recent multibillion-dollar acquisition by Thoma Bravo.

If you’re a SaaS or AI operator, this episode will help you define AI ARR, communicate adoption signals, and position your business model for higher valuation.

What You’ll Learn

• What AI ARR is and how to calculate it.
• Why public companies like Verint are breaking out AI ARR from total ARR.
• The mechanics: how finance teams identify AI-influenced products and SKUs.
• Quantitative + qualitative adoption signals (e.g., number of users leveraging AI features).
• Why AI ARR disclosures matter for investor metrics and exit valuations.
• How Thoma Bravo’s acquisition of Verint shows the value of communicating AI initiatives.

Why It Matters

• For SaaS & AI Leaders: Properly defining AI ARR helps show investors where new growth is coming from.
• For Finance Teams: Accurate reporting requires collaboration across accounting, product, and FP&A.
• For Investors: AI ARR signals measurable adoption and future revenue growth.
• For Valuation: Tying AI initiatives to financial outcomes increases credibility in fundraising and exit scenarios.

Resources Mentioned

Blog Post: How to Define AI ARR: https://www.thesaascfo.com/ai-arr-vs-saas-arr-how-to-define-and-calculate/

The SaaS Metrics Academy: https://www.thesaasacademy.com/

Quote from Ben

“Don’t just say you’re building AI into your product — show investors how much ARR it’s driving and what outcomes it’s creating.”