Worked Walkthrough: Build the ARR Bridge for a Quarter
Build and interpret a simple ARR bridge from opening ARR to closing ARR.
Opening ARR is $12.0M. During the quarter you add $1.1M new ARR, $0.5M expansion ARR, and $0.1M reactivation ARR, while losing $0.4M to contraction and $0.7M to churn. What is closing ARR and what does the bridge say? Closing ARR equals opening ARR plus positive movements minus negative movements, and the mix matters as much as the net. Teams often jump straight to the closing number and miss which part of the engine actually carried or weakened the quarter. Step 1 Start with opening ARR = $12.0M This is the recurring base you began the quarter with. Step 2 Add…
Sign up free — one personalized lesson every day, matched to your role and goals.
Already have an account? Sign in