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Bookings & revenue
ARR from bookings
How signed contracts change annual recurring revenue: new ACV adds, expansion adds, churn and downgrades subtract; one-time fees never count.
Owned by: Senior sales analystTest band: Senior sales analyst
The formula
Ending ARR = Starting ARR + New + Expansion − Contraction − Churn
In practice
ARR is a snapshot of the recurring base; bookings are a period flow. Reconcile the ARR bridge to bookings every month or the two drift apart.
The kind of thing the test asks
- Starting ARR $5M. New $800k, expansion $400k, contraction $150k, churn $450k. Ending ARR is…
More in bookings & revenue
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