SaaS & Subscriptions / Finance
Annual Contract Value ACV
The average annualized value of a customer contract, total contract value spread across the years of its term.
The fork, why two teams get different numbers
ACV-versus-ARR is the trap.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: SaaS operating-metric convention (no single standards body) · FASB ASC 606 (for the recurring vs one-time split)