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Total Contract Value (TCV)

The total value of the contract’s Subscription Revenue measured over the contract’s life regardless of the Billings amount. A simplistic example is a 2-year contract with a TCV twice the amount of its ACV. The calculation may change slightly in future years including price adjustments. A helpful reporting metric is the ratio of TCV to ACV. The higher the percentage, the stickier the contracts, leading to retention improvements and a more efficient sales cycle.

The total value of the contract’s Subscription Revenue measured over the contract’s life regardless of the Billings amount. A simplistic example is a 2-year contract with a TCV twice the amount of its ACV. The calculation may change slightly in future years including price adjustments. A helpful reporting metric is the ratio of TCV to ACV. The higher the percentage, the stickier the contracts, leading to retention improvements and a more efficient sales cycle.