What is the difference between ACV and ARR?
While ACV measures the total value of all contracts signed in a given year, ARR (Annual Recurring Revenue), on the other hand, is the amount of revenue that a company expects to receive on a yearly basis from its recurring customers. Both ACV and ARR are essential indicators of a company's health, but they have different implications for decision-making. ACV is typically used to measure growth, while ARR is more commonly used to measure profitability.