SaaS & Subscriptions / Finance
Committed / Booked ARR vs Live ARR cARR
Whether the ARR number counts contracts that are signed but not yet switched on, or only the subscriptions currently generating recurring revenue.
The fork, why two teams get different numbers
Sales and the board favor COMMITTED (booked) ARR: every signed contract, including deals that close this quarter but go live next quarter, and future contractual step-ups.
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: FASB ASC 606 · SaaS operating-metric convention (no single standards body)