Renewal Subscription Bookings

The ACV of contract renewals measured at the Renewal Date, i.e., the date of term renewal regardless of the signature date. For example, a one-year contract with a signature date of 3/15/2022 and a start date of 4/1/2022, will have a renewal date of 3/31/2023. The contract can be renewed at any point before (preferably not after) the renewal date. But as long as the start date for the second year of the contract is 3/31/2023, Renewal Subscription Bookings are deemed to occur on this date. I also picked this example to illustrate a Renewal date that lies in a separate quarter from the start date. In this case, the Renewal Bookings will occur in the first quarter (assuming the company’s fiscal year follows the calendar year). The ACV of the Renewal Subscription Bookings will be the same as that of the original Subscription Bookings. Any increase in ACV for the subsequent year, or years, should be considered Expansion Bookings. This is true even if the original contract includes a price increase.

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