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Definition · SaaS metrics

Committed ARR

Committed ARR is ARR that includes signed contracts not yet live, and how it differs from live or active ARR. For committed ARR, the useful boundary is whether the movement comes from customers, contracts, billing, cash timing, recognition rules, churn, expansion, pricing, or usage behavior.

Also known as cARR, contracted ARR, committed annual recurring revenue

Written by Pluvo TeamReviewed by Pluvo Team
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Why it matters

Understanding committed ARR matters because revenue and customer metrics can change materially when teams mix contract, billing, cash, recognition, churn, or expansion logic. The definition protects the story from drifting. Pluvo distinguishes committed from live ARR, so signed-but-not-yet-active contracts are counted deliberately.

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In practice

  • Revenue example

    Teams use committed ARR 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 distinguishes committed from live ARR, so signed-but-not-yet-active contracts are counted deliberately.

In practice, teams should define committed ARR with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.

Understanding committed ARR matters because revenue and customer metrics can change materially when teams mix contract, billing, cash, recognition, churn, or expansion logic. The definition protects the story from drifting. Pluvo distinguishes committed from live ARR, so signed-but-not-yet-active contracts are counted deliberately.

A strong workflow for committed ARR 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 distinguishes committed from live ARR, so signed-but-not-yet-active contracts are counted deliberately.

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FAQ

What is committed ARR?

Committed ARR is ARR that includes signed contracts not yet live, and how it differs from live or active ARR. For committed ARR, the useful boundary is whether the movement comes from customers, contracts, billing, cash timing, recognition rules, churn, expansion, pricing, or usage behavior.

What is the difference between cARR and ARR?

The boundary for committed ARR differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers ARR that includes signed contracts not yet live, and how it differs from live or active ARR, so teams should compare those boundaries before using it in reporting or planning.

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Sources

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