---
title: "ACV (Annual Contract Value) — Definition | FourSight Glossary"
url: https://foursight.cloud/glossary/acv
description: "The yearly value of a single customer contract, normalized to one year. Used to size and segment enterprise sales pipelines."
lang: en
---

Back to glossary: https://foursight.cloud/glossary

SaaS & Billing

# ACV (Annual Contract Value)

The yearly value of a single customer contract, normalized to one year. Used to size and segment enterprise sales pipelines.

Source

- HubSpot — ACV explained (https://blog.hubspot.com/sales/annual-contract-value-acv)

## Related terms

MRR (Monthly Recurring Revenue)

The predictable monthly subscription revenue a SaaS earns, normalized so annual plans count as 1/12 per month.
https://foursight.cloud/glossary/mrr

ARR (Annual Recurring Revenue)

Annualised subscription revenue, i.e.
https://foursight.cloud/glossary/arr

Churn

The rate at which customers cancel or downgrade.
https://foursight.cloud/glossary/churn

Webhook

An HTTP POST request a service sends to a URL you control when an event happens (e.g.
https://foursight.cloud/glossary/webhook

Idempotency

Property of an operation that produces the same result no matter how many times it runs.
https://foursight.cloud/glossary/idempotency

Exponential Backoff

A retry strategy where each subsequent retry waits exponentially longer than the last (e.g.
https://foursight.cloud/glossary/exponential-backoff

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