SaaSology - Words you want to know

What is ACV (Annual Contract Value)?

ACV, short for Annual Contract Value, is used as a metric to calculate the average yearly value per customer contract. It does not refer to one time fees. It doesn’t bring a lot of value when standing on its own. It can, however, prove to be very useful when compared with Customer Acquisition cost, as it shows when can the customer acquiring cost can be recovered.