Glossary term
ACV (Annual Contract Value)
The annualized revenue from a single customer contract; differentiate from company-wide ARR and from lifetime value (LTV).
ACV (Annual Contract Value) is the annualized revenue from a single customer contract, normalizing multi-year deals to a per-year figure. It differs from ARR, which aggregates recurring revenue across all customers, and from LTV, which estimates total value over the relationship's life. ACV is the standard unit for comparing deal sizes and segmenting enterprise versus mid-market sales motions. See ARR and SaaSpocalypse 101.