Growth Rate ACV

Metric Name

Growth Rate Annual Contract Value

Metric Family

Bookings

Metric Definition

Measures the rate at which the total annual contract value is increasing over a specific period.

Formula

Growth Rate ACV = (Current ACV - Initial ACV) / Initial ACV

Application

Provides insight into the company's ability to grow its revenue from both new and existing customers by signing higher-value contracts or expanding existing ones. A consistent increase in ACV growth rate is a positive indicator of business expansion.