Glossary

Annual Recurring Revenue — normalized annual value of active subscription contracts.

Contracted value signed in a period — often ACV or TCV depending on company definition.

Net burn divided by net new ARR — efficiency of growth spend in a period.

Customer Acquisition Cost — sales and marketing spend to acquire a customer.

Lost recurring revenue (logo or dollar) from customers ending or reducing contracts.

The process of finalizing a reporting period’s financial and operating metrics for reporting.

Decrease in recurring revenue from existing customers who remain active at a lower level.

Liability for cash collected (or billed) before revenue is recognized under GAAP.

Increase in recurring revenue from existing customers (upsell, seats, usage uplift under policy).

Financial Planning & Analysis — the finance function that plans, forecasts, and explains performance so leaders can decide with confidence.

Revenue recognized under ASC 606 / company accounting policy — distinct from ARR.

Gross Revenue Retention — retention of starting ARR before expansion credit.

Lifetime Value — expected gross profit from a customer relationship.

Management’s Discussion & Analysis — narrative explaining results, drivers, and outlook.

Monthly Recurring Revenue — the monthly view of subscription recurring value.

Net Revenue Retention — ending ARR from a starting cohort including expansion, contraction, and churn.

Open opportunities weighted or unweighted toward future bookings and ARR.

A continuously updated outlook that blends year-to-date actuals with forward plan assumptions.

Months of cash remaining at the current net burn rate.

Bridge from beginning ARR to ending ARR via new, expansion, contraction, churn, and other movements.