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Board OntologyCustomers

Average Contract Value (ACV)

Average annualized contract value across the active customer base (or across new logos, depending on the board's convention — document which). Expressed in the reporting currency. The board reads ACV alongside total customers to disambiguate logo-led vs. value-led growth, and against `customers.prior_quarter_acv` to see whether deal sizes are trending up (enterprise mix shift) or down (SMB dilution). Common pitfall: mixing new-logo ACV and blended-base ACV across periods — they trend differently; pick one and hold it. — Customers KPI, I'mBoard-authored (editorial tier).

I'mBoard-authored (editorial tier)

No public third-party standard anchors this KPI yet, so I'mBoard authors and maintains the definition — transparently labeled as editorial tier. See the ontology methodology for the published vs editorial tier system and the back-attribution workstream.

Rogue ID: customers.avg_contract_value Type: Currency Domain: Customers

Definition

Average annualized contract value across the active customer base (or across new logos, depending on the board's convention — document which). Expressed in the reporting currency. The board reads ACV alongside total customers to disambiguate logo-led vs. value-led growth, and against customers.prior_quarter_acv to see whether deal sizes are trending up (enterprise mix shift) or down (SMB dilution). Common pitfall: mixing new-logo ACV and blended-base ACV across periods — they trend differently; pick one and hold it.

Formula

ACV = total annualized contract value ÷ customer count, over the chosen population (active base or new logos). Hold the population definition constant period-over-period.

Why it matters

The unit-economics lever beneath ARR — rising ACV with flat logo growth signals a successful move up-market; falling ACV signals SMB dilution or discounting.

How to interpret

Trend against customers.prior_quarter_acv for direction. Absolute ACV bands are segment-specific (SMB vs. enterprise) — industry folk-wisdom, not citation-grade.

  • customers.prior_quarter_acv
  • customers.total_customers
  • customers.new_customers_added
  • sales.arr

Source

I'mBoard editorial — authored and maintained by I'mBoard, first published 2026-04-01. No third-party standard is cited for this KPI; when one emerges, the definition is back-attributed and promoted to the published tier (a minor version bump). Read the ontology methodology for the published vs editorial tier system, attribution rules, and dispute process.

Stage relevance

Company stagePriority
Pre-SeedCore
SeedCore
Series ACore
Series BCore
Series C+Core
PublicCore

Suggested for stages: Pre-Seed, Seed, Series A, Series B, Series C+, Public.

Default owning functions

  • Sales
  • Finance

Machine-readable

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