What is ACV (annual contract value) ?
ACV (annual contract value), measures the value of the contract over a 12-month period. Common traits that we will look for in ACV are the size of the ACV. The bigger the ACV means that you are able to close bigger deals and that you probably are in the enterprise market, where otherwise you are more into the SME market. The second factor that people will look at, is your capacity at growing your ACV over time. That implies either your product is fundamentally doing more (adding features and capabilities) to warrant that increase, or is delivering so much value customers (improved functionality over alternatives) that they are willing to pay more for it.