SaaS & Subscriptions / Revenue Operations
Net (Discount-Adjusted) ARR
ARR measured at the net price a customer actually pays after discounts, rather than at list (rack) price.
The fork, why two teams get different numbers
LIST ARR values contracts at published rate; NET ARR values them at the discounted price actually contracted, and enterprise discounts of fifteen to forty percent make the two diverge sharply.
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 606-10-32 (variable consideration and price concessions) · SaaS operating-metric convention (no single standards body)