Twitter/X

Andrew Parker argues for a dilution-adjusted growth metric to compare companies'…

2026-03-26 · 18:58 UTC ·@andrewparker ·0 min read

Brief

Andrew Parker proposes measuring firms by dilution-adjusted growth, giving the example that Company X’s 4x ARR YoY with 4% stock-based compensation dilution is superior to Company Y’s 5x ARR YoY achieved alongside 25% dilution from a new round. He argues markets and commentary currently overlook or even celebrate dilution, so headline growth alone misleads about true per-share progress.

Why it matters

Andrew Parker argues for a dilution-adjusted growth metric to compare companies' true shareholder value creation.

Key details

  • He contrasts Company X (4x ARR YoY growth with 4% SBC dilution) with Company Y (5x ARR YoY growth with 25% dilution from a new round) and says X is more impressive despite Y's higher headline growth.
  • Parker notes current discussion and markets tend to celebrate high headline growth (Y) while failing to account for heavy dilution that weakens per-share economics.
Source evidence

title: @andrewparker: We should measure companies in dilution-adjusted growth:
- Company X grows ARR 4x YoY with 4% SBC di...
author: @andrewparker
contenttype: tweet
publication: Twitter/X
published: 2026-03-26T18:58:54+00:00
sourceurl: https://x.com/andrewparker/status/2037242910056603881

word_count: 49

We should measure companies in dilution-adjusted growth:
- Company X grows ARR 4x YoY with 4% SBC dilution.
- Company Y grows ARR 5x YoY with 25% dilution from new round.

X is more impressive than Y. Yet, nothing we discuss captures that. If anything we celebrate Y's dilution.