Annual contract value (ACV)
ACV is the average annualized revenue generated from a customer contract, excluding one-time fees.
Annual Contract Value (ACV) measures the average yearly revenue from a customer contract. Unlike ARR, ACV is typically used for individual deals and excludes one-time setup or professional services fees.
Example: A customer signs a 3-year contract worth $90,000 total. The ACV is $30,000 per year.
