New Logos
Growth
Industry:
SaaS
Short Definition
New Logos represents the total number of new, unique customers or accounts acquired by a business within a specific period, typically through the signing of initial contracts or subscriptions. It measures the growth in the customer base, serving as a key indicator of market penetration, sales success, and customer acquisition effectiveness.
Short Definition
New Logos represents the total number of new, unique customers or accounts acquired by a business within a specific period, typically through the signing of initial contracts or subscriptions. It measures the growth in the customer base, serving as a key indicator of market penetration, sales success, and customer acquisition effectiveness.
Short Definition
New Logos represents the total number of new, unique customers or accounts acquired by a business within a specific period, typically through the signing of initial contracts or subscriptions. It measures the growth in the customer base, serving as a key indicator of market penetration, sales success, and customer acquisition effectiveness.
Why it matters for Investors
Market expansion: Reflects the ability to attract new customers, indicating market demand and reach.
Growth potential: Higher new logos suggest scalability and future revenue opportunities.
Acquisition efficiency: Trends in new logos help assess the effectiveness of sales and marketing strategies.
Why it matters for Investors
Market expansion: Reflects the ability to attract new customers, indicating market demand and reach.
Growth potential: Higher new logos suggest scalability and future revenue opportunities.
Acquisition efficiency: Trends in new logos help assess the effectiveness of sales and marketing strategies.
Why it matters for Investors
Market expansion: Reflects the ability to attract new customers, indicating market demand and reach.
Growth potential: Higher new logos suggest scalability and future revenue opportunities.
Acquisition efficiency: Trends in new logos help assess the effectiveness of sales and marketing strategies.
Formula
Practical considerations:
Scope: First-time paying customers only (not trials, not reactivations).
When to count: On the effective (go-live) date. Signed-not-live stays in CARR (Contracted ARR — starts later) until it begins.
How to measure: Monthly plans: New Logo MRR × 12 at go-live. Annual plans: Use the Year-1 committed annual price. Ignore partial-month charges and one-time fees (onboarding, hardware, credits).
Ramps (pre-scheduled step-ups): Count only Year-1 at go-live; when the step kicks in later, book that increase as Expansion (ramp).
Usage-based plans: Include the committed minimum only; exclude uncommitted/overage usage (that’s revenue, not ARR).
After go-live changes: Any increase after activation is Expansion (not New Logo), e.g., upsell, cross-sell, add-on.
Multi-product note: The first product that makes a customer paid is New Logo ARR; additional distinct products they add later are Cross-sell ARR.
Formula
Practical considerations:
Scope: First-time paying customers only (not trials, not reactivations).
When to count: On the effective (go-live) date. Signed-not-live stays in CARR (Contracted ARR — starts later) until it begins.
How to measure: Monthly plans: New Logo MRR × 12 at go-live. Annual plans: Use the Year-1 committed annual price. Ignore partial-month charges and one-time fees (onboarding, hardware, credits).
Ramps (pre-scheduled step-ups): Count only Year-1 at go-live; when the step kicks in later, book that increase as Expansion (ramp).
Usage-based plans: Include the committed minimum only; exclude uncommitted/overage usage (that’s revenue, not ARR).
After go-live changes: Any increase after activation is Expansion (not New Logo), e.g., upsell, cross-sell, add-on.
Multi-product note: The first product that makes a customer paid is New Logo ARR; additional distinct products they add later are Cross-sell ARR.
Formula
Practical considerations:
Scope: First-time paying customers only (not trials, not reactivations).
When to count: On the effective (go-live) date. Signed-not-live stays in CARR (Contracted ARR — starts later) until it begins.
How to measure: Monthly plans: New Logo MRR × 12 at go-live. Annual plans: Use the Year-1 committed annual price. Ignore partial-month charges and one-time fees (onboarding, hardware, credits).
Ramps (pre-scheduled step-ups): Count only Year-1 at go-live; when the step kicks in later, book that increase as Expansion (ramp).
Usage-based plans: Include the committed minimum only; exclude uncommitted/overage usage (that’s revenue, not ARR).
After go-live changes: Any increase after activation is Expansion (not New Logo), e.g., upsell, cross-sell, add-on.
Multi-product note: The first product that makes a customer paid is New Logo ARR; additional distinct products they add later are Cross-sell ARR.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective by Mar 31? | Counted in New Logos? | Δ Logos in March | Category | Notes |
|---|---|---|---|---|---|---|
A | New customer, starts Mar 4 | Yes | Yes | +1 | New Logo | Paid and active in March |
B | New customer, starts Apr 1 | No | No | 0 | Booking / CARR | Signed for April → not active in March |
C (initial) | New customer, starts Mar 12 | Yes | Yes | +1 | New Logo | Counted once (even if later upsell) |
C (upsell) | Upsell on Mar 20 (same customer) | Yes | No | 0 | Expansion | Not a new customer |
D | New customer on monthly plan, starts Mar 18 | Yes | Yes | +1 | New Logo | Activation counts; billing cadence doesn’t matter |
E | New customer, Year-1 commit $20,000 (ramps next year), starts Mar 25 | Yes | Yes | +1 | New Logo | Counted as a logo now; future ramp irrelevant for logo count |
F | Free trial on Mar 10 (no conversion) | No | No | 0 | Trial | Not a customer |
New Logos (March): 4 → A, C (initial), D, E
Notes:
Count unique new customers that go live in the period—one per account.
Signed-but-not-live sits in CARR until start (B).
Upsells/expansions after activation don’t create another new logo (C upsell).
Trials/POCs aren’t counted until they convert to paid and go live (F).
If you also report a customer count bridge, do it separately:
Ending Customers = Starting Customers + New Logos − Churned Logos (count).
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective by Mar 31? | Counted in New Logos? | Δ Logos in March | Category | Notes |
|---|---|---|---|---|---|---|
A | New customer, starts Mar 4 | Yes | Yes | +1 | New Logo | Paid and active in March |
B | New customer, starts Apr 1 | No | No | 0 | Booking / CARR | Signed for April → not active in March |
C (initial) | New customer, starts Mar 12 | Yes | Yes | +1 | New Logo | Counted once (even if later upsell) |
C (upsell) | Upsell on Mar 20 (same customer) | Yes | No | 0 | Expansion | Not a new customer |
D | New customer on monthly plan, starts Mar 18 | Yes | Yes | +1 | New Logo | Activation counts; billing cadence doesn’t matter |
E | New customer, Year-1 commit $20,000 (ramps next year), starts Mar 25 | Yes | Yes | +1 | New Logo | Counted as a logo now; future ramp irrelevant for logo count |
F | Free trial on Mar 10 (no conversion) | No | No | 0 | Trial | Not a customer |
New Logos (March): 4 → A, C (initial), D, E
Notes:
Count unique new customers that go live in the period—one per account.
Signed-but-not-live sits in CARR until start (B).
Upsells/expansions after activation don’t create another new logo (C upsell).
Trials/POCs aren’t counted until they convert to paid and go live (F).
If you also report a customer count bridge, do it separately:
Ending Customers = Starting Customers + New Logos − Churned Logos (count).
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective by Mar 31? | Counted in New Logos? | Δ Logos in March | Category | Notes |
|---|---|---|---|---|---|---|
A | New customer, starts Mar 4 | Yes | Yes | +1 | New Logo | Paid and active in March |
B | New customer, starts Apr 1 | No | No | 0 | Booking / CARR | Signed for April → not active in March |
C (initial) | New customer, starts Mar 12 | Yes | Yes | +1 | New Logo | Counted once (even if later upsell) |
C (upsell) | Upsell on Mar 20 (same customer) | Yes | No | 0 | Expansion | Not a new customer |
D | New customer on monthly plan, starts Mar 18 | Yes | Yes | +1 | New Logo | Activation counts; billing cadence doesn’t matter |
E | New customer, Year-1 commit $20,000 (ramps next year), starts Mar 25 | Yes | Yes | +1 | New Logo | Counted as a logo now; future ramp irrelevant for logo count |
F | Free trial on Mar 10 (no conversion) | No | No | 0 | Trial | Not a customer |
New Logos (March): 4 → A, C (initial), D, E
Notes:
Count unique new customers that go live in the period—one per account.
Signed-but-not-live sits in CARR until start (B).
Upsells/expansions after activation don’t create another new logo (C upsell).
Trials/POCs aren’t counted until they convert to paid and go live (F).
If you also report a customer count bridge, do it separately:
Ending Customers = Starting Customers + New Logos − Churned Logos (count).
Best Practices
Count when live: Only include customers that actually start service in the period (go-live date). Signed-not-live belongs in CARR until start.
One customer = one logo: Define “customer” (e.g., sold-to legal entity) and deduplicate across regions, subsidiaries, and channels.
Exclude non-paid: Trials/freemium aren’t counted until they convert to paid and go live.
Handle edge cases consistently: Name changes, mergers, reseller → direct moves: if service continued with no gap, it’s not a new logo.
Reconcile monthly: Starting Logos + New Logos − Churned Logos = Ending Logos (check against your customer list).
Segment for insight: Break out by channel, region, and customer size (SMB/mid/enterprise) to see what’s working.
Best Practices
Count when live: Only include customers that actually start service in the period (go-live date). Signed-not-live belongs in CARR until start.
One customer = one logo: Define “customer” (e.g., sold-to legal entity) and deduplicate across regions, subsidiaries, and channels.
Exclude non-paid: Trials/freemium aren’t counted until they convert to paid and go live.
Handle edge cases consistently: Name changes, mergers, reseller → direct moves: if service continued with no gap, it’s not a new logo.
Reconcile monthly: Starting Logos + New Logos − Churned Logos = Ending Logos (check against your customer list).
Segment for insight: Break out by channel, region, and customer size (SMB/mid/enterprise) to see what’s working.
Best Practices
Count when live: Only include customers that actually start service in the period (go-live date). Signed-not-live belongs in CARR until start.
One customer = one logo: Define “customer” (e.g., sold-to legal entity) and deduplicate across regions, subsidiaries, and channels.
Exclude non-paid: Trials/freemium aren’t counted until they convert to paid and go live.
Handle edge cases consistently: Name changes, mergers, reseller → direct moves: if service continued with no gap, it’s not a new logo.
Reconcile monthly: Starting Logos + New Logos − Churned Logos = Ending Logos (check against your customer list).
Segment for insight: Break out by channel, region, and customer size (SMB/mid/enterprise) to see what’s working.
FAQs
What is included in New Logos?
A unique customer that becomes active (goes live) in the period.Can New Logos decrease?
Yes—relative to prior periods—if fewer customers go live.How are renewals handled?
No. Renewals are existing customers continuing service.Does an upsell/expansion create a New Logo?
No. It’s the same customer; count remains 1.What if it’s signed but starts next period?
Don’t count it yet. Add it when it goes live.What about reactivated customers (won back after churn)?
Track as Reactivated Logos (or clearly mark “win-back”). If you don’t use that line, include them as New Logos—just be consistent.What if a sign-up is canceled?
Don’t count it as a New Logo. Only count customers that become active (go-live). If they go live and later cancel, they were a New Logo at activation; the later cancel is tracked as Logo Churn (logos).Multiple subsidiaries under one parent—how many logos?
Follow your defined customer unit (e.g., each paid sold-to legal entity = one logo) and apply it the same way every time.Is New Logos the same as New Logo ARR?
No. New Logos is a count; New Logo ARR is the annualized dollars from those new customers.
FAQs
What is included in New Logos?
A unique customer that becomes active (goes live) in the period.Can New Logos decrease?
Yes—relative to prior periods—if fewer customers go live.How are renewals handled?
No. Renewals are existing customers continuing service.Does an upsell/expansion create a New Logo?
No. It’s the same customer; count remains 1.What if it’s signed but starts next period?
Don’t count it yet. Add it when it goes live.What about reactivated customers (won back after churn)?
Track as Reactivated Logos (or clearly mark “win-back”). If you don’t use that line, include them as New Logos—just be consistent.What if a sign-up is canceled?
Don’t count it as a New Logo. Only count customers that become active (go-live). If they go live and later cancel, they were a New Logo at activation; the later cancel is tracked as Logo Churn (logos).Multiple subsidiaries under one parent—how many logos?
Follow your defined customer unit (e.g., each paid sold-to legal entity = one logo) and apply it the same way every time.Is New Logos the same as New Logo ARR?
No. New Logos is a count; New Logo ARR is the annualized dollars from those new customers.
FAQs
What is included in New Logos?
A unique customer that becomes active (goes live) in the period.Can New Logos decrease?
Yes—relative to prior periods—if fewer customers go live.How are renewals handled?
No. Renewals are existing customers continuing service.Does an upsell/expansion create a New Logo?
No. It’s the same customer; count remains 1.What if it’s signed but starts next period?
Don’t count it yet. Add it when it goes live.What about reactivated customers (won back after churn)?
Track as Reactivated Logos (or clearly mark “win-back”). If you don’t use that line, include them as New Logos—just be consistent.What if a sign-up is canceled?
Don’t count it as a New Logo. Only count customers that become active (go-live). If they go live and later cancel, they were a New Logo at activation; the later cancel is tracked as Logo Churn (logos).Multiple subsidiaries under one parent—how many logos?
Follow your defined customer unit (e.g., each paid sold-to legal entity = one logo) and apply it the same way every time.Is New Logos the same as New Logo ARR?
No. New Logos is a count; New Logo ARR is the annualized dollars from those new customers.
Related Metrics
Commonly mistaken for:
Active Users (Includes all active users, not just new customers)
Total Logos (Cumulative customer base, not just new additions)
Renewal Logos (Customers renewing, not newly acquired)
Related Metrics
Commonly mistaken for:
Active Users (Includes all active users, not just new customers)
Total Logos (Cumulative customer base, not just new additions)
Renewal Logos (Customers renewing, not newly acquired)
Related Metrics
Commonly mistaken for:
Active Users (Includes all active users, not just new customers)
Total Logos (Cumulative customer base, not just new additions)
Renewal Logos (Customers renewing, not newly acquired)
Source of:
Index