Commit 948fc90e authored by Paul Machle's avatar Paul Machle

ARR updates

parent 7dfa8b9a
Pipeline #57913661 passed with stages
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......@@ -81,7 +81,12 @@ The change in cash balance from period to period excluding equity or debt financ
Current Period subscription bookings which will result in revenue over next 12 months. For multiple year deals with contracted ramps, the ACV will be the average annual booking per year.
#### Incremental Annual Contract Value (IACV)
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months less any credits, lost renewals, downgrades or any other decrease to annual recurring revenue. Excluded from IACV are bookings that are non-recurring such as professional services, training and non-recurring engineering fees (PCV). Also equals ACV less renewals. However, bookings related to true-up licenses, although non-recurring, are included in IACV.
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months less any credits, lost renewals, downgrades or any other decrease to annual recurring revenue. Excluded from IACV are bookings that are non-recurring such as professional services, training and non-recurring engineering fees (PCV). Also equals ACV less renewals. However, bookings related to true-up licenses, although non-recurring, are included in IACV because the source of the true-ups are additional users which will result in recurring revenue.
IACV may relate to future periods (within twelve months).
Beg ARR + IACV may not equal ending ARR due to the following reasons:
1. Timing difference due to IACV that will not start until a later period.
1. ARR will be reduced by subscriptions that have expired but which may be recorded as a reduction to IACV in a different period (either earlier or later).
#### Gross Incremental Annual Contract Value (Gross IACV)
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months. Gross IACV includes true-ups and refunds.
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