ACV
Annual Contract Value — the average annualised revenue value of a customer contract, normalising multi-year deals to a per-year amount.
What it shows
ACV indicates deal size and segment mix. Tracking ACV over time shows whether the business is moving upmarket or downmarket. Comparing ACV to CAC reveals the unit economics of each deal — a $10K ACV deal with a $15K CAC is economically unsustainable.
Formula
ACV = Total Contract Value ÷ Contract Length in Years. A $300K, 3-year deal: ACV = $100K. A 1-year deal's ACV equals its TCV.
Tracked in these industries
Manufacturing
Unit sales and volume contracts with long procurement cycles. RevOps bridges ERP (operations) and CRM (sales) through CPQ and contract management.
LegalTech
Legal software companies and law firms operate on matter-based billing, multi-stakeholder buying committees, and ethical billing compliance rules — creating RevOps requirements distinct from any subscription SaaS model.
Cybersecurity
Cybersecurity companies face compliance-gated buying cycles, MSSP channel complexity, and consumption-based licensing tied to endpoints or events — creating RevOps requirements driven by breach events and regulatory mandates rather than planned budgets.
Professional Services & Consulting
Consulting and professional services firms generate revenue through billable hours, project milestones, and retainer agreements — requiring RevOps to instrument utilisation rates, SOW pipelines, and resource capacity constraints that directly cap top-line growth.
CleanTech & Energy
Clean technology and energy companies blend hardware sales, EPC project revenue, and recurring SaaS monitoring fees — requiring RevOps to manage hybrid revenue recognition, government incentive program tracking, and utility-scale deal structures simultaneously.