ACV

Annual Contract Value (ACV) serves as a key performance indicator (KPI) in SaaS, providing insight into the average value of a subscription agreement over a year-long period. Unlike Annual Recurring Revenue (ARR), which looks at the total value of recurring revenue at a point in time, ACV specifically looks at the value of the contracts themselves.

It is particularly useful for understanding the size of deals a sales team is closing and is often analyzed alongside CAC (Customer Acquisition Cost) to determine the efficiency of sales efforts.