An ARR waterfall is a financial modeling use case where you use time-based cohorts to show how forecasted bookings turn into recognized revenue according to your rev rec schedule. Employing robust financial modeling software can streamline the creation of such complex models, enhancing efficiency and accuracy. The term may also refer to a simpler data visualization where you break ARR growth down by new, expansion, downgrade, and churn revenue. This is better known as an ARR or revenue bridge chart.