Expansion ARR

Annual Recurring Revenue — the value of all recurring subscription revenue normalized to a one-year run-rate as of the period close. The headline operating metric for a subscription business; every growth and efficiency ratio (NRR, GRR, magic number, CAC payback, Rule of 40) is calibrated against it. Excludes one-time fees, professional services, and non-contractual usage. Common pitfall: confusing ARR (contracted recurring) with revenue (recognized) or with CARR (contracted incl. not-yet-live) — the SMSB standard draws sharp lines between them, and boards expect the same discipline. The KpiVarianceTable widget surfaces forecast / actual / variance / status / future-forecast columns against the same field.

Annualized recurring revenue booked from net-new logos (first-time customers) during the period. This is the "hunt" line of the ARR waterfall — the output of the new-customer acquisition motion, distinct from expansion (existing-customer upsell) and from churn / downgrades. Common pitfall: counting renewals or expansion deals as new business inflates the new-logo conversion engine and hides a stalled acquisition motion. The KpiVarianceTable widget shows period forecast vs actual; downstream views compare it to S&M spend to derive new-business CAC and CAC payback.

Annualized recurring revenue lost during the period from customers who fully cancelled — terminating their contract or letting it lapse without renewal. The "leak" line of the ARR waterfall and the denominator of Gross Revenue Retention. Distinct from Downgrade ARR (sales.downgrades) which captures contractions where the customer stays. Common pitfall: lumping mid-term cancellations with non-renewals masks two very different retention failures — surface them separately when material. The KpiVarianceTable widget tracks period forecast vs actual; a widening miss against forecast is the earliest signal of a retention problem.

Annualized recurring revenue lost from existing customers who reduced spend mid-term or at renewal (seat reductions, tier downgrades, removed modules) — without leaving entirely. The "contraction" line of the ARR waterfall, distinct from full churn. Often a more sensitive leading indicator than churn because customers tend to contract before they cancel. Common pitfall: lumping downgrades into churn obscures the early-warning signal — boards looking only at logo churn miss the slow-bleed pattern. Surfaces in the KpiVarianceTable widget alongside expansion and churn so the net-retention math is auditable.

Fully-loaded S&M plus Customer Success expense attributable to expansion divided by expansion CARR generated in the period. Per SMSB, the efficiency read on the upsell / cross-sell / land-and-expand motion. Distinct from the new-logo CAC ratio because the cost base often includes CSMs whose primary metric is retention but whose secondary metric is expansion — boards expect to see that allocation called out. Common pitfall: excluding CS comp entirely understates the true cost of expansion; including all of CS overstates it. The SMSB standard prescribes a documented allocation rule (typically tied to expansion-quota OTE share).

Recurring revenue retained from the cohort of customers present at the start of the period, including expansion (upsell, cross-sell, price increases) and net of churn and contraction — but excluding revenue from net-new logos acquired in-period. Per the SaaS Metrics Standards Board (SMSB) NRR standard. NRR above 100% means the cohort grew faster than it lost — a hallmark of strong product-led expansion. The board reads NRR alongside GRR (`customers.gross_revenue_retention`) to separate the "keep + expand" signal from the "just keep" signal. Common pitfall: mixing GAAP revenue and ARR in numerator vs. denominator, or letting net-new logo revenue leak in — both inflate the number; SMSB is explicit that the cohort is closed at period start.