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The EU Just Killed ARR
The EU Data Act changes everything for SaaS: customers can now cancel anytime with two months’ notice. ARR isn’t guaranteed anymore, and retention is no longer about contracts, but about operations, renewals, and customer care.
The usual trick that SaaS companies rely on, offering “discounted” three-year deals in exchange for lock-in, is all but gone. Investors may still talk about ARR multiples, but in Europe, that revenue is a rolling suggestion, not a contractual guarantee. Going forward, your growth curve depends less on how clever your contracts are, and more on how resilient your operations are when customers forget, delay, or mismanage renewals.
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