New ACV

Metric Name

New Annual Contract Value

Metric Family

Bookings

Metric Definition

Measures the annualized revenue from new customer contracts signed within a specific period.

Formula

New ACV = TCV / Total Contract Duration

Application

Provides insight into the financial impact of newly acquired customers and help assess the effectiveness of the company's sales and marketing strategies in generating recurring revenue. A strong New ACV is often seen as a positive indicator of business expansion and future revenue streams.