I don't know how this will work as revenues grow, and clearly revenue is more important than ACV at some point, but will growth from existing clients show up as increased ACV?
I know in my experience with SaaS companies I prefer to sign a ongoing contract with a reasonable usage rate and a relatively low commitment. We endeavor to use the thing and if successful we'll spend more. Often there's no new contact at all unless we think we can negotiate better terms. For example, an agreement with a $50k initial commitment with one well known vendor ended up running for 4 years and we spend about 10x that before signing a new contract with renegotiated rate.
Likely depends on the client. I would prefer to see annualized run rate than annualized contract value.
3DP Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
