Definition · SaaS metrics
ARR bridge
ARR bridge is a roll-forward that decomposes the change in ARR from one period to the next into new, expansion, contraction, and churned ARR. For ARR bridge, the important details are the period, source evidence, reviewer, threshold, and control purpose that make the treatment auditable.
Also known as MRR bridge, ARR walk, ARR roll-forward, ARR waterfall
Why it matters
Understanding ARR bridge matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo builds the ARR bridge automatically and ties each component to the customers and contracts behind it.
In practice
Revenue example
Teams use ARR bridge when they need to separate customer, contract, billing, recognition, and cash effects. That prevents a revenue movement from being misread as growth, churn, expansion, or timing noise.
Pluvo example
Pluvo builds the ARR bridge automatically and ties each component to the customers and contracts behind it.
In practice, teams should define ARR bridge with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding ARR bridge matters because close, reconciliation, and audit work depend on consistent timing, source evidence, review thresholds, and ownership. A loose definition creates avoidable rework. Pluvo builds the ARR bridge automatically and ties each component to the customers and contracts behind it.
A strong workflow for ARR bridge separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo builds the ARR bridge automatically and ties each component to the customers and contracts behind it.
FAQ
What is an ARR bridge?
ARR bridge is a roll-forward that decomposes the change in ARR from one period to the next into new, expansion, contraction, and churned ARR. For ARR bridge, the important details are the period, source evidence, reviewer, threshold, and control purpose that make the treatment auditable.
What goes into an ARR waterfall?
Teams use ARR bridge when they agree on the source data, time period, owner, and decision it supports. Here, it covers a roll-forward that decomposes the change in ARR from one period to the next into new, expansion, contraction, and churned ARR, so the term should be reviewed before it is used in reporting, planning, or operating decisions.
How do you build an ARR roll-forward?
To use ARR bridge, start with the decision, then confirm the source data, timing, calculation logic, and owner. The analysis is strongest when a reviewer can trace the answer back to the records that produced it.