Glossary term
Net New ARR
New ARR plus expansion ARR minus churned ARR; the single cleanest measure of recurring-revenue growth in a period.
Net New ARR is the change in annual recurring revenue over a period, calculated as new customer ARR plus expansion ARR minus churned and contracted ARR. It is the single cleanest measure of growth because it nets all the forces acting on the recurring-revenue base into one number. A decelerating net new ARR is the earliest reliable sign that a SaaS growth story is fading. See Expansion Revenue and SaaSpocalypse 101.