// Metrics
ACV
Annual Contract Value, normalised annual revenue from a customer contract, excluding one-time fees.
In depth
ACV normalises multi-year contracts to a single-year figure so that a 3-year $300k deal and a 1-year $100k deal are directly comparable. It excludes one-time services, setup and overage. ACV is the denominator behind most SaaS efficiency metrics (CAC payback, magic number, sales cycle).
Related terms
ARR
Annual Recurring Revenue, the run-rate of contracted subscription revenue at a point in time.
Bookings
Signed contract value in a period. Not revenue; not cash. The leading indicator RevOps lives on.
TCV
Total Contract Value, full multi-year contract value including one-time fees, services and expected overages.