If I have the math right, their revenue of $130m is made up of $110m in COGS. If they’re losing $1m/month that means they’re spending roughly $30m/year on running the business. My educated guess is most of that $30m is marketing spend required to secure the $130m revenue and cuttable costs (salaries, office space) are much less than $10m/year.

Sounds like ARR is the wrong term since it’s probably not a business operating on recurring revenue — probably an example of the bananas valuations of the last few years, based on revenue not viability.