New Logo ARR
Growth
Industry:
SaaS
Aliases:
Short Definition
New Logo ARR is the increase in Annual Recurring Revenue (ARR) from first-time customers during a given period. It captures the ARR from new accounts going live with their initial subscription/contract. Signed-but-not-started deals are excluded (they sit in CARR until the start date).
Short Definition
New Logo ARR is the increase in Annual Recurring Revenue (ARR) from first-time customers during a given period. It captures the ARR from new accounts going live with their initial subscription/contract. Signed-but-not-started deals are excluded (they sit in CARR until the start date).
Short Definition
New Logo ARR is the increase in Annual Recurring Revenue (ARR) from first-time customers during a given period. It captures the ARR from new accounts going live with their initial subscription/contract. Signed-but-not-started deals are excluded (they sit in CARR until the start date).
Why it matters for Investors
Growth: Shows how much ARR came from new customer wins (acquisition).
Go-to-market signal: Reveals progress in new segments/regions
Efficiency context: When viewed alongside CAC, CAC Payback, or Magic Number, it helps judge acquisition efficiency (New Logo ARR itself doesn’t include cost).
Why it matters for Investors
Growth: Shows how much ARR came from new customer wins (acquisition).
Go-to-market signal: Reveals progress in new segments/regions
Efficiency context: When viewed alongside CAC, CAC Payback, or Magic Number, it helps judge acquisition efficiency (New Logo ARR itself doesn’t include cost).
Why it matters for Investors
Growth: Shows how much ARR came from new customer wins (acquisition).
Go-to-market signal: Reveals progress in new segments/regions
Efficiency context: When viewed alongside CAC, CAC Payback, or Magic Number, it helps judge acquisition efficiency (New Logo ARR itself doesn’t include cost).
Formula
Where n = number of new customers whose contracts become effective within the period.
Practical considerations -
When to count: Only when the contract starts (go-live). Signed-not-live sits in CARR until it begins.
How much to count (monthly & annual): At go-live, New Logo ARR = New Logo MRR × 12 (monthly plans) or Year-1 committed annual price (annual plans). Use the live price; ignore prorations (partial-period charges) and one-time fees.
Ramps: A ramp is a pre-agreed step-up (price/seats/minimum).
Count Year-1 now; when the step starts, add only the increase as Expansion (ramp).
Example: $20k → $35k next year → count $20k now; later add +$15k.Usage-based: Include only the committed minimum; exclude uncommitted/overage usage (revenue, not ARR).
Exclude one-time items: Onboarding, implementation, hardware pass-throughs, one-off credits.
Report gross: New Logo ARR is before churn/down-sells; the net shows in Net New ARR.
Formula
Where n = number of new customers whose contracts become effective within the period.
Practical considerations -
When to count: Only when the contract starts (go-live). Signed-not-live sits in CARR until it begins.
How much to count (monthly & annual): At go-live, New Logo ARR = New Logo MRR × 12 (monthly plans) or Year-1 committed annual price (annual plans). Use the live price; ignore prorations (partial-period charges) and one-time fees.
Ramps: A ramp is a pre-agreed step-up (price/seats/minimum).
Count Year-1 now; when the step starts, add only the increase as Expansion (ramp).
Example: $20k → $35k next year → count $20k now; later add +$15k.Usage-based: Include only the committed minimum; exclude uncommitted/overage usage (revenue, not ARR).
Exclude one-time items: Onboarding, implementation, hardware pass-throughs, one-off credits.
Report gross: New Logo ARR is before churn/down-sells; the net shows in Net New ARR.
Formula
Where n = number of new customers whose contracts become effective within the period.
Practical considerations -
When to count: Only when the contract starts (go-live). Signed-not-live sits in CARR until it begins.
How much to count (monthly & annual): At go-live, New Logo ARR = New Logo MRR × 12 (monthly plans) or Year-1 committed annual price (annual plans). Use the live price; ignore prorations (partial-period charges) and one-time fees.
Ramps: A ramp is a pre-agreed step-up (price/seats/minimum).
Count Year-1 now; when the step starts, add only the increase as Expansion (ramp).
Example: $20k → $35k next year → count $20k now; later add +$15k.Usage-based: Include only the committed minimum; exclude uncommitted/overage usage (revenue, not ARR).
Exclude one-time items: Onboarding, implementation, hardware pass-throughs, one-off credits.
Report gross: New Logo ARR is before churn/down-sells; the net shows in Net New ARR.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective? | ARR impact | Category | Notes |
|---|---|---|---|---|---|
A | New logo, annual $24,000, starts Mar 4 | Yes | +$24,000 | New Logo | Counts in New Logo ARR |
B | New logo, annual $36,000, starts Apr 1 | No | $0 | Booking/ CARR | Signed, not live in March |
C (initial) | New logo, annual $50,000, starts Mar 12 | Yes | $60,000 ($50,000 → $60,000) | +$50,000 | Initial go-live amount counts here |
C (upsell) | Upsell +$10,000 on Mar 20 (same account) | Yes | $60,000 | +$10,000 | Post-activation increase = Expansion |
D | New logo, MRR $2,000, starts Mar 18 | Yes | $24,000 | +$24,000 | MRR × 12 for ARR |
E | New logo, Year-1 commit $20,000 (ramps to $35,000 in Year-2), starts Mar 25 | Yes | $20,000 | +$20,000 | Count Year-1 now; future step not ARR yet |
F | Free trial Mar 10 (no conversion) | No | $0 | $0 | Not ARR |
New Logo ARR (March): $118,000 = $24,000 (A) + $50,000 (C initial) + $24,000 (D) + $20,000 (E)
ARR bridge contribution (from these events):
New Logo ARR: +$118,000
Expansion: +$10,000 (C upsell)
(No contraction/logo churn shown here; this is the New Logo view.)
Notes
Count on the effective date, not when signed (B sits in CARR until Apr 1).
Monthly plans: MRR × 12; Annual plans: Year-1 price.
Ramps: Include only Year-1 now; add the step-up later as Expansion (ramp).
Exclude one-time fees and uncommitted/overage usage.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective? | ARR impact | Category | Notes |
|---|---|---|---|---|---|
A | New logo, annual $24,000, starts Mar 4 | Yes | +$24,000 | New Logo | Counts in New Logo ARR |
B | New logo, annual $36,000, starts Apr 1 | No | $0 | Booking/ CARR | Signed, not live in March |
C (initial) | New logo, annual $50,000, starts Mar 12 | Yes | $60,000 ($50,000 → $60,000) | +$50,000 | Initial go-live amount counts here |
C (upsell) | Upsell +$10,000 on Mar 20 (same account) | Yes | $60,000 | +$10,000 | Post-activation increase = Expansion |
D | New logo, MRR $2,000, starts Mar 18 | Yes | $24,000 | +$24,000 | MRR × 12 for ARR |
E | New logo, Year-1 commit $20,000 (ramps to $35,000 in Year-2), starts Mar 25 | Yes | $20,000 | +$20,000 | Count Year-1 now; future step not ARR yet |
F | Free trial Mar 10 (no conversion) | No | $0 | $0 | Not ARR |
New Logo ARR (March): $118,000 = $24,000 (A) + $50,000 (C initial) + $24,000 (D) + $20,000 (E)
ARR bridge contribution (from these events):
New Logo ARR: +$118,000
Expansion: +$10,000 (C upsell)
(No contraction/logo churn shown here; this is the New Logo view.)
Notes
Count on the effective date, not when signed (B sits in CARR until Apr 1).
Monthly plans: MRR × 12; Annual plans: Year-1 price.
Ramps: Include only Year-1 now; add the step-up later as Expansion (ramp).
Exclude one-time fees and uncommitted/overage usage.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective? | ARR impact | Category | Notes |
|---|---|---|---|---|---|
A | New logo, annual $24,000, starts Mar 4 | Yes | +$24,000 | New Logo | Counts in New Logo ARR |
B | New logo, annual $36,000, starts Apr 1 | No | $0 | Booking/ CARR | Signed, not live in March |
C (initial) | New logo, annual $50,000, starts Mar 12 | Yes | $60,000 ($50,000 → $60,000) | +$50,000 | Initial go-live amount counts here |
C (upsell) | Upsell +$10,000 on Mar 20 (same account) | Yes | $60,000 | +$10,000 | Post-activation increase = Expansion |
D | New logo, MRR $2,000, starts Mar 18 | Yes | $24,000 | +$24,000 | MRR × 12 for ARR |
E | New logo, Year-1 commit $20,000 (ramps to $35,000 in Year-2), starts Mar 25 | Yes | $20,000 | +$20,000 | Count Year-1 now; future step not ARR yet |
F | Free trial Mar 10 (no conversion) | No | $0 | $0 | Not ARR |
New Logo ARR (March): $118,000 = $24,000 (A) + $50,000 (C initial) + $24,000 (D) + $20,000 (E)
ARR bridge contribution (from these events):
New Logo ARR: +$118,000
Expansion: +$10,000 (C upsell)
(No contraction/logo churn shown here; this is the New Logo view.)
Notes
Count on the effective date, not when signed (B sits in CARR until Apr 1).
Monthly plans: MRR × 12; Annual plans: Year-1 price.
Ramps: Include only Year-1 now; add the step-up later as Expansion (ramp).
Exclude one-time fees and uncommitted/overage usage.
Best Practices
Show separately from Expansion: Makes it clear how much growth came from new vs. existing customers.
Pair with efficiency metrics: Add CAC, CAC Payback, Magic Number to judge quality, not just size.
Segment it: Report by channel, region, customer size (SMB/mid/enterprise) to see what’s working.
Keep rules consistent: Use the same go-live rule every period so trends are comparable.
Best Practices
Show separately from Expansion: Makes it clear how much growth came from new vs. existing customers.
Pair with efficiency metrics: Add CAC, CAC Payback, Magic Number to judge quality, not just size.
Segment it: Report by channel, region, customer size (SMB/mid/enterprise) to see what’s working.
Keep rules consistent: Use the same go-live rule every period so trends are comparable.
Best Practices
Show separately from Expansion: Makes it clear how much growth came from new vs. existing customers.
Pair with efficiency metrics: Add CAC, CAC Payback, Magic Number to judge quality, not just size.
Segment it: Report by channel, region, customer size (SMB/mid/enterprise) to see what’s working.
Keep rules consistent: Use the same go-live rule every period so trends are comparable.
FAQs
New Logo ARR vs Expansion ARR?
New Logo ARR = new customers' recurring contracts. Expansion ARR = more ARR from existing customers.Does New Logo ARR include upsells in month 1?
Once the initial subscription is active, any extra increase is Expansion, even if it happens in the same month. New Logo covers the initial recurring value from a new customer; subsequent increases are Expansion.What if the contract is signed but not live?
It's Bookings/CARR, not ARR. ARR only includes active contracts.Is “New ARR” the same as New Logo ARR?
No. Many teams use “New ARR” inconsistently (sometimes new customers only, sometimes new + expansion). We use New Logo ARR for new customers only, and New ARR for New Logo ARR + Expansion ARR.Can New Logo ARR be negative?
No. If a customer cancels later, that shows up as Churn ARR.
FAQs
New Logo ARR vs Expansion ARR?
New Logo ARR = new customers' recurring contracts. Expansion ARR = more ARR from existing customers.Does New Logo ARR include upsells in month 1?
Once the initial subscription is active, any extra increase is Expansion, even if it happens in the same month. New Logo covers the initial recurring value from a new customer; subsequent increases are Expansion.What if the contract is signed but not live?
It's Bookings/CARR, not ARR. ARR only includes active contracts.Is “New ARR” the same as New Logo ARR?
No. Many teams use “New ARR” inconsistently (sometimes new customers only, sometimes new + expansion). We use New Logo ARR for new customers only, and New ARR for New Logo ARR + Expansion ARR.Can New Logo ARR be negative?
No. If a customer cancels later, that shows up as Churn ARR.
FAQs
New Logo ARR vs Expansion ARR?
New Logo ARR = new customers' recurring contracts. Expansion ARR = more ARR from existing customers.Does New Logo ARR include upsells in month 1?
Once the initial subscription is active, any extra increase is Expansion, even if it happens in the same month. New Logo covers the initial recurring value from a new customer; subsequent increases are Expansion.What if the contract is signed but not live?
It's Bookings/CARR, not ARR. ARR only includes active contracts.Is “New ARR” the same as New Logo ARR?
No. Many teams use “New ARR” inconsistently (sometimes new customers only, sometimes new + expansion). We use New Logo ARR for new customers only, and New ARR for New Logo ARR + Expansion ARR.Can New Logo ARR be negative?
No. If a customer cancels later, that shows up as Churn ARR.
Related Metrics
Commonly mistaken for:
Expansion ARR (more ARR from existing customers)
New ARR (includes expansion too)
Related Metrics
Commonly mistaken for:
Expansion ARR (more ARR from existing customers)
New ARR (includes expansion too)
Related Metrics
Commonly mistaken for:
Expansion ARR (more ARR from existing customers)
New ARR (includes expansion too)
Source of:
Index