Net New ARR
What is Net New ARR?
Net New ARR is the total amount of new annual recurring revenue added in a period, calculated as New ARR plus Expansion ARR minus Churned ARR and Contraction ARR. It provides a comprehensive view of the net growth of the subscription business.
Why It Matters
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It is the most accurate reflection of the actual growth in the company’s recurring revenue base.
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Tracking Net New ARR helps management understand the net impact of sales, success, and churn.
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It is a key metric for reporting to the board and investors on the company’s performance.
