Two revenue numbers appear throughout ClientSuccess — ARR and cARR — and they often show different values for the same customer. Understanding what each one represents and when ClientSuccess uses each will save you a lot of confusion when reconciling your revenue data.
Definitions
ARR (Annual Recurring Revenue) — annual recurring revenue that is currently "active" within the subscription start date and end date.
cARR (Committed ARR) — a more comprehensive, forward-looking view of ARR that includes both "active" ARR and any "committed" (or booked) changes to ARR as of the committed or booked date. cARR reflects any committed new deals, upsells, cross-sells, downsells, renewals, or churn — as of the date those transactions are booked.
ARR and cARR are two methods of reporting ARR, but each represents a different perspective to give you a more holistic view of your business. The same report can paint a different picture depending on the method you pick.
A Helpful Analogy: Cash vs. Accrual Accounting
Cash and Accrual are two methods of reporting income and expenses — the same report can paint a different picture depending on the method you pick.
Cash Accounting = counts income and expenses only when you receive the payment (cash in) or pay the bill (cash out). This is like ARR — it only counts what's active right now.
Accrual Accounting = counts income and expenses as if they happened when you send an invoice or receive a bill, even if cash hasn't changed hands yet. This is like cARR — it counts what's been committed, even before it starts.
ARR — what it measures
ARR measures "active" subscriptions currently within their start date and end date. A subscription must have started and not yet ended for it to contribute to ARR.
For a subscription to contribute to ARR, all three of the following must be true:
The product is marked as recurring in Settings → Products
The subscription has a start date that has already passed
The subscription has an end date set in the future (or is open-ended)
cARR — what it measures
cARR shows ARR values from the initial commitment until the commitment changes — up, down, new, lost, or remains the same. It's committed until it's not, or until the commitment changes.
Sometimes changes to ARR are booked or "committed" before the start date, end date, or the effective date of the change. cARR captures these committed changes as of the date they were booked.
Examples
The following examples show how ARR and cARR behave differently across common scenarios. In each diagram, the green bar represents cARR and the amber/orange bar represents ARR.
Example 1: new deal booked BEFORE subscription start date
When a new deal is closed before the subscription start date, cARR reflects the value immediately at the deal close date. ARR only activates once the start date arrives.
Example 2: churn booked ON subscription end date
When churn is booked on the end date, both ARR and cARR are $10,000 during the active subscription and drop to $0 at the same time.
Example 3: churn booked BEFORE subscription end date
When churn is booked early, cARR drops to $0 at the churn booked date. ARR remains $10,000 until the actual end date — because the subscription is still active.
Example 4: flat renewal booked ON end date
A standard renewal booked exactly on the end date results in no gap — ARR and cARR both remain at $10,000 continuously through the renewal.
Example 5: flat renewal booked BEFORE end date
When a flat renewal is booked early, there is no change in value — cARR stays at $10,000 and ARR stays at $10,000. No gap appears because the renewal amount is identical.
Example 6: upsell renewal booked BEFORE end date
When a renewal with an upsell is booked early, cARR jumps to $12,000 at the booking date. ARR stays at $10,000 until the end date, then updates to $12,000 when the new subscription begins.
Example 7: downsell renewal booked BEFORE end date
When a renewal with a downsell is booked early, cARR drops to $8,000 at the booking date. ARR stays at $10,000 until the end date, then updates to $8,000 when the new subscription begins.
Example 8: mid-term upsell booked BEFORE effective date
A mid-term upsell booked in advance causes cARR to jump to $12,000 at the booking date. ARR stays at $10,000 until the effective date mid-subscription, then updates to $12,000.
Example 9: mid-term downsell booked BEFORE effective date
A mid-term downsell booked in advance causes cARR to drop to $8,000 at the booking date. ARR stays at $10,000 until the effective date mid-subscription, then updates to $8,000.
Example 10: renewal booked AFTER end date (late booking)
When a renewal is booked late — after the end date has already passed — both ARR and cARR drop to $0 at the end date. Once the late renewal is booked, the term still aligns with the effective renewal date and ARR retroactively reflects $10,000 from that date forward.
Common questions
My ARR looks wrong — it's lower than I expect
If you recently signed a renewal or new deal with a future start date, that revenue will be in cARR but not yet in ARR. Check the subscription start date on the affected customer record. If the start date is in the future, ARR will update automatically on that date.
ARR shows zero but I've entered a subscription
Check three things: (1) Is the product marked as recurring in Settings → Products? (2) Does the subscription have both a start date and end date set? (3) Has the start date already passed? All three must be true for ARR to calculate. If all three are confirmed, contact support to request a revenue index refresh.
Which should I use for reporting to leadership?
It depends on what you're measuring. Use ARR for a snapshot of current live revenue — what customers are paying you right now. Use cARR for forward-looking reporting — what revenue you've committed to in a given period, including deals not yet started. Most CS teams lead with ARR for health and risk reporting, and cARR for forecasting and growth conversations.