Reactivation ARR
Growth
Industry:
SaaS
Aliases:
Short Definition
Reactivation ARR is the annual recurring revenue added when a previously churned account — at $0, immediately before restart — comes back to paid in the period. Count it on the reactivation start date (go-live), not when it’s signed or promised.
Short Definition
Reactivation ARR is the annual recurring revenue added when a previously churned account — at $0, immediately before restart — comes back to paid in the period. Count it on the reactivation start date (go-live), not when it’s signed or promised.
Short Definition
Reactivation ARR is the annual recurring revenue added when a previously churned account — at $0, immediately before restart — comes back to paid in the period. Count it on the reactivation start date (go-live), not when it’s signed or promised.
Why it matters for Investors
Retention recovery: Shows how much lost ARR you’ve won back.
Efficient growth: Reactivations often cost less than brand-new logos.
Signal of product fit: Rising reactivations (with low re-churn) suggest improved value or pricing. Especially important in high-churn industries or subscription businesses where renewals and recapturing lost customers drive growth.
Why it matters for Investors
Retention recovery: Shows how much lost ARR you’ve won back.
Efficient growth: Reactivations often cost less than brand-new logos.
Signal of product fit: Rising reactivations (with low re-churn) suggest improved value or pricing. Especially important in high-churn industries or subscription businesses where renewals and recapturing lost customers drive growth.
Why it matters for Investors
Retention recovery: Shows how much lost ARR you’ve won back.
Efficient growth: Reactivations often cost less than brand-new logos.
Signal of product fit: Rising reactivations (with low re-churn) suggest improved value or pricing. Especially important in high-churn industries or subscription businesses where renewals and recapturing lost customers drive growth.
Formula
Practical considerations -
Scope: Include only accounts that were at $0 immediately before they restarted (i.e., fully churned).
Timing: Use the go-live date of the reactivation (signed-for-later sits in CARR until it starts).
Ramps & upsells: Future step-ups count later as Expansion (ramp); any post-reactivation increase is Expansion, not Reactivation.
Churn rescinded: If a cancel is withdrawn before the end date, don’t book churn or reactivation.
Always Positive: Reactivation ARR is always positive and cannot be negative since it represents inflows from accounts restarting from zero.
Formula
Practical considerations -
Scope: Include only accounts that were at $0 immediately before they restarted (i.e., fully churned).
Timing: Use the go-live date of the reactivation (signed-for-later sits in CARR until it starts).
Ramps & upsells: Future step-ups count later as Expansion (ramp); any post-reactivation increase is Expansion, not Reactivation.
Churn rescinded: If a cancel is withdrawn before the end date, don’t book churn or reactivation.
Always Positive: Reactivation ARR is always positive and cannot be negative since it represents inflows from accounts restarting from zero.
Formula
Practical considerations -
Scope: Include only accounts that were at $0 immediately before they restarted (i.e., fully churned).
Timing: Use the go-live date of the reactivation (signed-for-later sits in CARR until it starts).
Ramps & upsells: Future step-ups count later as Expansion (ramp); any post-reactivation increase is Expansion, not Reactivation.
Churn rescinded: If a cancel is withdrawn before the end date, don’t book churn or reactivation.
Always Positive: Reactivation ARR is always positive and cannot be negative since it represents inflows from accounts restarting from zero.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective by Mar 31? | Account ARR @ Mar-31 ($) | Δ ARR in March ($) | Category | Notes |
|---|---|---|---|---|---|---|
A | New logo, annual $24,000, starts Mar 4 | Yes | $24,000 | +$24,000 | New Logo | Not Reactivation |
B | New logo, annual $36,000, starts Apr 1 | No | $0 | $0 | Booking / CARR | Signed, starts next month |
C | Upsell on existing (+$18,000) eff. Mar 15 (prior $50,000) | Yes | $68,000 ($50,000 → $68,000) | +$18,000 | Expansion | Not Reactivation |
D | Cancellation effective Mar 31 (prior $40,000) | Yes | $0 | −$40,000 | Logo Churn | Account to $0 |
E | Year-2 ramp $20,000 → $35,000 on Mar 1 | Yes | $35,000 | +$15,000 | Expansion (ramp) | Not Reactivation |
H | Reactivation: previously churned account returns at $28,000 on Mar 22 | Yes | $28,000 | +$28,000 | Reactivation | Was $0 before re-start. |
Reactivation ARR (March): $28,000 = $28,000 (H)
ARR Bridge (March)
New Logo ARR: +$24,000 (A)
Expansion ARR: +$33,000 (C + E)
Reactivation ARR: +$28,000 (H)
Contraction ARR: $0
Logo Churn ARR: −$40,000 (D)
Net New ARR: $24,000 + $33,000 + $28,000 − $40,000 = $45,000
Ending ARR (Mar 31): $1,200,000 + $45,000 = $1,245,000
If your bridge only uses four lines, include Reactivation under New Logo and omit the separate Reactivation line. The math is unchanged.
Notes:
H counts as Reactivation because it was at $0 and restarted this period.
B is signed for April → CARR in March.
A (new logo), C/ E (expansion) are not Reactivation.
D is Logo Churn (to $0).
Any increase after H’s restart would be Expansion, not more Reactivation.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective by Mar 31? | Account ARR @ Mar-31 ($) | Δ ARR in March ($) | Category | Notes |
|---|---|---|---|---|---|---|
A | New logo, annual $24,000, starts Mar 4 | Yes | $24,000 | +$24,000 | New Logo | Not Reactivation |
B | New logo, annual $36,000, starts Apr 1 | No | $0 | $0 | Booking / CARR | Signed, starts next month |
C | Upsell on existing (+$18,000) eff. Mar 15 (prior $50,000) | Yes | $68,000 ($50,000 → $68,000) | +$18,000 | Expansion | Not Reactivation |
D | Cancellation effective Mar 31 (prior $40,000) | Yes | $0 | −$40,000 | Logo Churn | Account to $0 |
E | Year-2 ramp $20,000 → $35,000 on Mar 1 | Yes | $35,000 | +$15,000 | Expansion (ramp) | Not Reactivation |
H | Reactivation: previously churned account returns at $28,000 on Mar 22 | Yes | $28,000 | +$28,000 | Reactivation | Was $0 before re-start. |
Reactivation ARR (March): $28,000 = $28,000 (H)
ARR Bridge (March)
New Logo ARR: +$24,000 (A)
Expansion ARR: +$33,000 (C + E)
Reactivation ARR: +$28,000 (H)
Contraction ARR: $0
Logo Churn ARR: −$40,000 (D)
Net New ARR: $24,000 + $33,000 + $28,000 − $40,000 = $45,000
Ending ARR (Mar 31): $1,200,000 + $45,000 = $1,245,000
If your bridge only uses four lines, include Reactivation under New Logo and omit the separate Reactivation line. The math is unchanged.
Notes:
H counts as Reactivation because it was at $0 and restarted this period.
B is signed for April → CARR in March.
A (new logo), C/ E (expansion) are not Reactivation.
D is Logo Churn (to $0).
Any increase after H’s restart would be Expansion, not more Reactivation.
Worked Example
Starting ARR (Feb 28): $1,200,000
Period: March (snapshot Mar 31)
Account | Event | Effective by Mar 31? | Account ARR @ Mar-31 ($) | Δ ARR in March ($) | Category | Notes |
|---|---|---|---|---|---|---|
A | New logo, annual $24,000, starts Mar 4 | Yes | $24,000 | +$24,000 | New Logo | Not Reactivation |
B | New logo, annual $36,000, starts Apr 1 | No | $0 | $0 | Booking / CARR | Signed, starts next month |
C | Upsell on existing (+$18,000) eff. Mar 15 (prior $50,000) | Yes | $68,000 ($50,000 → $68,000) | +$18,000 | Expansion | Not Reactivation |
D | Cancellation effective Mar 31 (prior $40,000) | Yes | $0 | −$40,000 | Logo Churn | Account to $0 |
E | Year-2 ramp $20,000 → $35,000 on Mar 1 | Yes | $35,000 | +$15,000 | Expansion (ramp) | Not Reactivation |
H | Reactivation: previously churned account returns at $28,000 on Mar 22 | Yes | $28,000 | +$28,000 | Reactivation | Was $0 before re-start. |
Reactivation ARR (March): $28,000 = $28,000 (H)
ARR Bridge (March)
New Logo ARR: +$24,000 (A)
Expansion ARR: +$33,000 (C + E)
Reactivation ARR: +$28,000 (H)
Contraction ARR: $0
Logo Churn ARR: −$40,000 (D)
Net New ARR: $24,000 + $33,000 + $28,000 − $40,000 = $45,000
Ending ARR (Mar 31): $1,200,000 + $45,000 = $1,245,000
If your bridge only uses four lines, include Reactivation under New Logo and omit the separate Reactivation line. The math is unchanged.
Notes:
H counts as Reactivation because it was at $0 and restarted this period.
B is signed for April → CARR in March.
A (new logo), C/ E (expansion) are not Reactivation.
D is Logo Churn (to $0).
Any increase after H’s restart would be Expansion, not more Reactivation.
Best Practices
Keep a reactivation list: Track prior churn date, reason lost, reason won back, and owner.
Don’t double count: If you show Reactivation as its own line, don’t also include it in New Logo.
Segment smartly: View by time since churn (<90 days / 90–180 days / >180 days), plan, and reason codes.
Close the loop: Share top reactivation reasons with Product/ Customer Success to reinforce what worked.
Best Practices
Keep a reactivation list: Track prior churn date, reason lost, reason won back, and owner.
Don’t double count: If you show Reactivation as its own line, don’t also include it in New Logo.
Segment smartly: View by time since churn (<90 days / 90–180 days / >180 days), plan, and reason codes.
Close the loop: Share top reactivation reasons with Product/ Customer Success to reinforce what worked.
Best Practices
Keep a reactivation list: Track prior churn date, reason lost, reason won back, and owner.
Don’t double count: If you show Reactivation as its own line, don’t also include it in New Logo.
Segment smartly: View by time since churn (<90 days / 90–180 days / >180 days), plan, and reason codes.
Close the loop: Share top reactivation reasons with Product/ Customer Success to reinforce what worked.
FAQs
What qualifies as Reactivation?
A previously churned account (at $0) that becomes active and paid again this period.Reactivation vs New Logo?
New logo = brand-new customer. Reactivation = a comeback from $0. (Some teams bucket reactivations under New Logo—be consistent.)When do we count it?
On the reactivation start (go-live) date, not when it’s signed.Does it include later upsells?
No. The comeback amount is Reactivation ARR; any increase after that is Expansion.Can Reactivation ARR be negative?
No—it’s an inflow. If the customer churns again later, that shows up as Logo Churn ARR then.
FAQs
What qualifies as Reactivation?
A previously churned account (at $0) that becomes active and paid again this period.Reactivation vs New Logo?
New logo = brand-new customer. Reactivation = a comeback from $0. (Some teams bucket reactivations under New Logo—be consistent.)When do we count it?
On the reactivation start (go-live) date, not when it’s signed.Does it include later upsells?
No. The comeback amount is Reactivation ARR; any increase after that is Expansion.Can Reactivation ARR be negative?
No—it’s an inflow. If the customer churns again later, that shows up as Logo Churn ARR then.
FAQs
What qualifies as Reactivation?
A previously churned account (at $0) that becomes active and paid again this period.Reactivation vs New Logo?
New logo = brand-new customer. Reactivation = a comeback from $0. (Some teams bucket reactivations under New Logo—be consistent.)When do we count it?
On the reactivation start (go-live) date, not when it’s signed.Does it include later upsells?
No. The comeback amount is Reactivation ARR; any increase after that is Expansion.Can Reactivation ARR be negative?
No—it’s an inflow. If the customer churns again later, that shows up as Logo Churn ARR then.
Related Metrics
Commonly mistaken for:
New Logo ARR (brand-new customers)
Expansion ARR (increases for already-active customers)
Related Metrics
Commonly mistaken for:
New Logo ARR (brand-new customers)
Expansion ARR (increases for already-active customers)
Related Metrics
Commonly mistaken for:
New Logo ARR (brand-new customers)
Expansion ARR (increases for already-active customers)
Source of:
Index