You can scream and bleat all you like about ACV - but unless you realise its a very rough guesstimate of what the business will do in the future - you will miss the point!
ACV is not an actual number - it is a guess at to how much contracted clients will spend over the next 12 months. There is tons of room for error here: • client spend is lumpy • projected work gets delayed • clients need to do other stuff before work OR pay actually happens... • your key champion in the client moves on... • and so on....
The only purpose of ACV is to give a forecast - over a time frame - if it proves wrong then too bad - as a SH perhaps you can choose to discount this by 50% - or just not even bother thinking about it - and focus on revenue in the quarterly
Imagine Woolies saying to a customer 'what are you going to spend in store in the next 12 months?' - and they say well I spend on average $200 week - so take that and multiply by 52 - and the very next week they discover ALDI - that's what you're dealing with!!!!
3DP Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
