Read the ARR Movement Waterfall
Explain what ARR movement components reveal that a top-line ARR number hides.
The reframe: ARR growth is not one signal. It is four operating signals stacked into one number. New ARR New ARR reflects acquisition: positioning, pipeline quality, win rate, sales cycle, and onboarding handoff. It is the signal most teams celebrate first, but it is only one path to growth. Expansion ARR Expansion ARR shows whether customers are finding more value over time through seats, usage, add-on modules, price step-ups, or broader workflows. Contraction and Churn Contraction is the early warning: the customer stays but shrinks. Churn is the visible loss. Reading them separately prevents new sales from masking retention weakness.…
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