ARPA (Average Revenue Per Account)
Recurring revenue divided by number of accounts. The per-customer economics figure that decodes what is driving ARR growth.
What movement tells you
ARR can grow through more customers or through more revenue per customer, and the two imply different strategies. Rising ARPA with flat account count means expansion is working; rising account count with falling ARPA means you are moving downmarket, deliberately or otherwise.
Segment it
RELATED TERMS
Segmentation
Dividing the market into groups that warrant different treatment — different motion, pricing, coverage or support model.
Annual Recurring Revenue (ARR)
The annualised value of recurring subscription revenue at a point in time. A run rate, not a measure of revenue earned during a period.
Expansion Revenue
Additional recurring revenue from existing customers: more seats, higher tiers, additional products or increased usage.
Average Contract Value (ACV)
The annualised value of a contract, averaged across a set of deals. The standard unit for comparing new business.
Learn how to apply this: RevOps 101: Revenue Operations Foundations
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