Business Pitch Dictionary by pitch.dog
Recurring revenue & contract metrics · Core

Annual contract value

Also called: ACV

ELI5

The annualised value of a contract, with inclusion rules varying by company.

Used in conversation

“Can we state who receives the right created by annual contract value, and when it applies?”

Pitch context

You will see “Annual contract value” in go-to-market plans, sales forecasts, account reviews and commercial proposals when the discussion reaches recurring revenue & contract metrics.

Why it matters: It helps a reader interpret recurring revenue & contract metrics without confusing the measure, decision, role or evidence being discussed.

Connected terms

  • Total contract valueACV annualises or measures contract value for one year; TCV covers the total committed contract term under the stated method.
Sources & evidence · 2

Supporting source families. This entry is an editorial synthesis rather than a quotation from one canonical glossary.