---
layout: handbook-page-toc
title: "Sales"
---
## On this page
{:.no_toc .hidden-md .hidden-lg}
- TOC
{:toc .hidden-md .hidden-lg}
## Reaching the Sales Team (internally)
- [**Public Issue Tracker**](https://gitlab.com/gitlab-com/sales/issues/) please use confidential issues for topics that should only be visible to team members at GitLab.
- [**Sales Google Groups**](/handbook/sales/sales-google-groups)
- [**Chat channel**](https://gitlab.slack.com/archives/sales) please use the `#sales` chat channel for questions that don't seem appropriate to use the issue tracker or the internal email address for.
- [**Sales Support**](/handbook/sales/field-operations/sales-operations) please reference the Sales Support and Sales Operation handbook page for a summary of how to engage with deal desk resources.
- **Chatter @contracts** on the specific record in Salesforce where you will need assistance from the legal team.
- Please avoid contacting individual directly so that the discussion can be available for everyone to review.
## Quick Reference Guide
| **GETTING STARTED** | **SALES PROCESS** | **MARKETING** |
| :------ | :------ | :------ |
| **Getting Started**
* [Sales Onboarding](/handbook/sales/onboarding)
* [Sales Tools](/handbook/business-ops/tech-stack-applications/#tech-stack-applications)
* [Team Org Chart](/company/team/org-chart/)
* [Team Structure and Roles](#team-structure--roles)
* [Commercial](/handbook/sales/commercial)
* [Territories](/handbook/sales/territories)
* [Channel Handbook (public)](/handbook/sales/channel/#channels-handbook)
* [Channel Home (internal)](https://gitlab.com/gitlab-com/sales-team/field-operations/channel/-/wikis/Channel-home)
* [Bi-Weekly WW Field Sales Call](#bi-weekly-monday-sales-call)
**Sales Enablement Resources**
* [Sales Onboarding](/handbook/sales/onboarding)
* [Sales Training](/handbook/sales-training/)
* [Command of the Message](/handbook/sales/command-of-the-message)
* [Most Commonly Used Sales Resources](/handbook/marketing/product-marketing/sales-resources/)
* [GitLab University](https://docs.gitlab.com/ee/university/) (note: some of the content in GitLab University may be out of date)
* [Field Flash Newsletter](/handbook/sales/field-communications/field-flash-newsletter/)
| **Standard Operating Procedures**
* [Engage & Educate the Customer](/handbook/sales/sales-operating-procedures/engage-and-educate-the-customer) **Fundamentals**
* [Account Ownership Rules of Engagement](/handbook/business-ops/resources/#account-ownership-rules-of-engagement)
* [Parent-Child Accounts](#parent-and-child-accounts)
* [Opportunity Stages](/handbook/business-ops/resources/#opportunity-stages)
* [Record Ownership](/handbook/business-ops/resources/#record-ownership)
* [Forecasting Definitions and Processes](#weekly-forecasting)
* [Associating Emails to Salesforce](#associating-emails-to-opportunities)
* [Additional Metrics and Definitions](#definitions)
* [Sales Commissions](/handbook/sales/commissions/)
**Top of the Funnel**
* See the [Marketing section](/handbook/marketing)
**Early-to Mid-Stage**
* [Opportunity Types](/handbook/business-ops/resources/#opportunity-types)
* [Opportunity Naming Conventions](/handbook/business-ops/resources/#opportunity-naming-convention)
* [How to Create an Opportunity](/handbook/business-ops/resources/#how-to-create-an-opportunity)
* [MEDDPICC qualification](#capturing-meddpicc-questions-for-deeper-qualification)
* [Additional Discovery Questions](/handbook/sales-qualification-questions/)
* [GitLab ROI Calculator](/roi/?team_size=100&developer_cost=75)
* [Technical Evaluation/Proof of Concept Guidelines](/handbook/sales/POV/)
* [Creating a Quote in Salesforce](https://about.gitlab.com/handbook/sales/field-operations/sales-operations/deal-desk/#zuora-quote-configuration-guide)
* [Quote Approval Matrix](https://docs.google.com/document/d/1-CH-uH_zr0qaVaV1QbmVZ1rF669DsaUeq9w-q1QiKPE/edit?usp=sharing)
* [Delivering a Quote via Sertifi](/handbook/business-ops/order-processing/#step-6--send-for-signature-via-sertifi)
**Late Stage**
* [Submitting an Opportunity for Approval](/handbook/business-ops/order-processing/#step-7--submitting-an-opportunity-for-approval)
* [How To Handle Vendor Setup Forms](https://about.gitlab.com/handbook/business-ops/order-processing/#how-to-process-customer-requested-vendor-setup-forms)
**Post-Sales Processes**
* [Renewing/Amending a Subscription](/handbook/business-ops/order-processing/#returning-customer-creation-processupgraderenewalscancellations)
* [True Ups](#true-up)
* Contract Resets (Coming Soon)
* Consolidation of Subscriptions (Coming Soon)
| **Marketing Resources**
* [GitLab Messaging](/handbook/marketing/revenue-marketing/sdr/#gitlab-messaging)
* [Lead Gen Content Resources](/resources/)
* [Routing Rules](/handbook/business-ops/resources/#routing-1)
* [Lead and Contact Statuses](/handbook/business-ops/resources/#lead--contact-statuses)
**Strategic Marketing**
* [Strategic Marketing Handbook](/handbook/marketing/product-marketing/)
* [Product Marketing Manager Assignments](/handbook/marketing/product-marketing/#which-product-marketing-manager-should-i-contact)
* [Customer-Facing Presentations](/handbook/marketing/product-marketing/#customer-facing-presentations)
* [Print Collateral](/handbook/marketing/product-marketing/#print-collateral)
* [Sales Collateral Google Drive](https://drive.google.com/open?id=0B-ytP5bMib9TaUZQeDRzcE9idVk)
**Sales Development**
* [Sales Development Handbook](/handbook/marketing/revenue-marketing/sdr/)
**Business Development**
|
| **FIELD OPERATIONS** | **PRODUCT** | **FINANCE** |
| [**Field Operations Homepage**](/handbook/sales/field-operations)
[**Sales Operations**](/handbook/sales/field-operations/sales-operations)
[**Deal Desk**](https://about.gitlab.com/handbook/sales/field-operations/sales-operations/deal-desk/#zuora-quote-configuration-guide)
[**Sales Systems**](/handbook/sales/field-operations/sales-systems)
[**Sales Strategy and Analytics**](/handbook/sales/field-operations/sales-strategy)
[**Field Enablement**](/handbook/sales/field-operations/field-enablement)
| **Product Resouces**
* [Product Team Handbook](/handbook/product/)
* [Engaging Product Management](/handbook/product/how-to-engage/)
* [Asking Questions/Giving Feedback on a Feature](/handbook/product/categories/#devops-stages)
* [Product Categories](/handbook/product/categories/)
* [Other Product Handbook Pages](/handbook/product/#other-product-handbook-pages)
| **Finance Processes**
* [Deal Desk: Assistance with Quotes](/handbook/business-ops/order-processing/#assistance-with-quotes)
* [Deal Desk: Approval Process](/handbook/business-ops/order-processing/#deal-desk-approval-process)
* [Sending a Quote to Zuora](/handbook/business-ops/order-processing/#step-8--sending-the-quote-to-zuora)
* [How to Initiate a Refund](/handbook/finance/accounting/#7-invoice-cancellations-and-refunds)
**Legal Processes**
* [Legal Page](/handbook/legal/)
* [Engaging Legal in Deals](/handbook/business-ops/order-processing/#process-for-agreement-terms-negotiations-when-applicable)
**Business Operations Resources**
* [Business Operations Handbook](/handbook/business-ops)
* [Data Team Handbook](/handbook/business-ops/data-team/)
* [Data Quality Process](/handbook/business-ops/data-quality-process/)
* [IT Ops Handbook](/handbook/business-ops/it-ops-team/)
* [Access Requests](https://gitlab.com/gitlab-com/team-member-epics/access-requests)
|
| **CUSTOMER SUCCESS** | **OTHER RESOURCES** | |
|
**Customer Success Resources**
* [Customer Success Groups](/handbook/customer-success/#customer-success-groups)
* [How to Engage a Solutions Architect](/handbook/customer-success/solutions-architects#when-and-how-to-engage-a-solutions-architect)
* [Account Planning Template for Large Accounts](https://docs.google.com/presentation/d/1yQ6W7I30I4gW5Vi-TURIz8ZxnmL88uksCl0u9oyRrew/edit?ts=58b89146#slide=id.g1c9fcf1d5b_0_24)
| **Other Sales Topics in Handbook**
* [FAQ From Prospects](/handbook/sales-faq-from-prospects/)
* [Client Use Cases](/handbook/use-cases/)
* [Dealing with Security Questions From Prospects](/handbook/engineering/security/#security-questionnaires-for-customers)
* [How to conduct an executive meeting](https://www.youtube.com/watch?v=PSGMyoEFuMY&feature=youtu.be)
* [CEO Preferences when speaking w/ prospects/customers](/handbook/people-group/ceo-preferences/#sales-meetings)
**Sales Resources Outside of the Sales Handbook**
* [Resellers Handbook](/handbook/resellers/)
* [Customer Reference Sheet](https://docs.google.com/a/gitlab.com/spreadsheets/d/1Off9pVkc2krT90TyOEevmr4ZtTEmutMj8dLgCnIbhRs/edit?usp=sharing)
* [GitLab Support Handbook](/handbook/support/)
* [GitLab Hosted](/gitlab-hosted/)
|
## Sales Tools
Tools that you will use in your day to day workflow, to see a complete list &/or for Contact/Admin details please see [full tech stack table on the Business OPS page](/handbook/business-ops/tech-stack-applications/#tech-stack-applications).
- Chorus (Recorder in NORAM; Listener for ROW)
- Clari
- Conga Contracts
- DataFox
- DiscoverOrg (Commerical, provided to SDRs paired to SALs)
- GovWinIQ
- [LeanData](/handbook/marketing/marketing-operations/leandata) (not directly used by reps but handles routing & managed by MktgOps)
- LinkedIn Sales Navigator
- [Outreach](/handbook/marketing/marketing-operations/outreach)
- Rollup Helper
- Salesforce
- Sertifi
- Slack
- Visual Compliance
- Xactly
- Webex (limited use case tt OPS if access needed)
- Zendesk
- Zoom
## Team Structure & Roles
See the GitLab [org chart](/company/team/org-chart).
Reporting into the Chief Revenue Officer (CRO) are the:
* VP Enterprise Sales
* VP [Commercial Sales](/handbook/sales/commercial/)
* VP WW Field Operations
* VP Customer Success
* VP [WW Channels](/handbook/sales/channel/)
* VP Alliances
#### Initial Account owner - based on [segment](/handbook/business-ops/resources/#segmentation)
The people working with each segment and their quota are:
1. Large: Strategic Account Leader (SAL)
2. Mid-Market: Mid-Market Account Executive (MM AE)
3. SMB: [SMB Customer Advocate](/handbook/sales/commercial/#smb-customer-advocates) can close SMB deals directly by referring them to our self-serve web store or assisting them with a direct purchase.
#### Holdover Accounts when a SAL is promoted to Area Sales Manager
In advance of a SAL being promoted to an ASM, the SAL may choose as holdovers for 3 months from their promotion effective date opportunities which are greater than or equal to all of the following Salesforce opportunity characteristics: $100k IACV, Stage 3, 50% Probability, provided that the opportunity attributes are established in good faith.
The holdover accounts must first be approved by the VP, Enterprise Sales and then documented with Sales Operations no later than the promotion effective date.
The new ASM is expected to spend less than 25% of their time as an ASM managing the holdover accounts and is required to proactively incorporate the receiving SAL into the account so the transition is minimally disruptive to the account and maximizes GitLab’s opportunity to best serve the customer.
Each individual holdover account will be fully transitioned to the receiving SAL on the opportunity close date (won or lost), 3 months following the promotion effective date, or upon the new ASM’s discretion, whichever comes first.
Any opportunity which meets the listed qualifications and is closed won during the holdover period will result in commission credit to the ASM equal to the commission they would have received under their most recent SAL compensation plan.
There will be no additional stacked ASM payout, although it will retire ASM quota.
The receiving SAL will receive no quota or commission credit.
## Operating Cadence - Sales Meetings, Presentations, Forecasting and Definitions
### Bi-Weekly Monday Sales Call
* When: Every other Monday 9:00am to 9:50am Pacific time.
The call is cancelled on observed US holidays that fall on Mondays.
* What: The agenda can be found by searching in Google Drive for Sales Agenda".
Remember that everyone is free to add topics to the agenda.
Please start with your name and be sure to link to any relevant issue, merge request, or commit.
* General Guidelines
1. We start on time and do not wait for people.
1. If you are unable to attend, just add your name to the list of "Not Attending".
1. When someone passes the call to you, no need to ask "Can you hear me?" Just begin talking and if you can't be heard, someone will let you know.
* The call is recorded automatically, and all calls are transferred every hour to a Google Drive folder called "GitLab Videos".
There is a subfolder called "Sales Team Meeting", which is accessible to all users with a GitLab.com e-mail account.
* The general order of the call is outlined below. Once the presenter has shared all of their items, they should then ask for questions.
If there are no questions or all the questions have been answered, the presenter is to handoff to the next presenter on the agenda.
1. The CRO or VP Sales will start the call with performance to-date for the month/quarter, then share the remaining forecast for the month/quarter. The CRO will then discuss any number of topics ranging from pipeline cleanup, process reminders, and other messages to the group. If the CRO is not attending, the Director of Sales Operations will share this update.
2. The VP of Go To Market will provide a team update.
3. Account Executives will share details of key deals (won, lost, pushed).
1. The Director of Sales Operations will provide an update to process changes, new fields, and other updates related to sales process and group productivity.
1. Customer Success is next. The Director of Customer Success may provide an update to an existing process or an introduction to a new process. In some cases, Solutions Architects may provide an update as well.
1. Marketing will provide an update to Sales. The Sales and Business Development Manager will provide an update on SDR performance to plan: pipeline created, meetings scheduled, and other SDR metrics. Other members of marketing may provide updates - new collateral, events, and other marketing-related activities.
1. Next, any topics from the group for discussion are encouraged. This can include questions on products, processes, or reminders to the rest of the group. In some cases, a summary of an event (client meetings, meetups, trade shows) will be shared.
1. The call will conclude with a general 'scrum', which is designed for Account Executives to share anything new they have learned over the last week. This may include some competitive knowledge, new-found strategies or tactics that they have found helpful.
* If you cannot join the call, consider reviewing the recorded call or at minimum read through the sales team agenda and the links from there.
### Bi Weekly Revenue Meeting
* Organized by the CRO
* Required attendees: CRO, CMO, guests required for specific agenda
* Optional: CEO, CFO, CEO direct reports
* Single review of the business and discusson of key metrics, decisions and actions related to the entire revenue model end-to-end
* Key contributors are CRO, CMO and CFO plus their teams and leadership as appropriate
* Customer journey and revenue model from the top of the funnel through to renewals and growth are represented in a set of metrics that, together, fully describe the business and represent both the leading and trailing indicators of revenue including investment inputs, activity and outputs.
* Key agenda points will be mapped along the customer journey, but include and are not limited to:
* QTD Bookings vs. Target
* Recent Top Bookings Review (impactful?)
* Forecast Rollup (CRO, Segment VP, Regional RD Forecasts, Key deal highlights, Pipeline Generation Trends, What’s working, what’s not - (@VP level)
* Renewals Summary (Renewals Closed & Forecast, Top At-Risk Renewals & Remediation, conversion rates, trends by tier and market)
* Hiring plan dashboard
* Non-Std Bookings Summary (impactful?)
* A/R Summary (impactful?)
* Marketing (TBD)
### Weekly Thursday Sales Enablement Call led by the Training and Enablement team
* When: Happens every Thursday at 9am Pacific time
### Sales Group Conversation
* When: Happens once every 4 to 5 weeks at 8am Pacific time
* Where: Zoom link varies - please be sure to check the calendar invitation
* What: The CRO Leaders will rotate and provide the company with an update on their business, overall team performance, notable wins, accomplishments, and relevant strategies planned.
You can view previous updates in the "Group Conversation Sales" (previously "Functional Group Update Sales") folder on the Google Drive.
### Quarterly Business Reviews
* When: First month of every quarter
* Where: Mix of in-person and virtual formats
* Feb: In person (co-located with Sales Kick Off)
* May: Virtual
* Aug: In-person (tentative)
* Nov: Virtual
* What: Regional Sales QBRs (Quarterly Business Reviews) are hosted and agenda is determined by Regional Directors (RDs) and/or Area Sales Managers (ASMs).
* ENT Sales QBRs
* APAC
* EMEA: UK, Netherlands, Scandinavia, DACH, and South
* AMER East: Central, Northeast, Southeast, and Named
* AMER West: Midwest, NorCal, Pacific NW, and Rockies & SoCal
* US PubSec: Civilian, National Security Group (NSG includes DHS, DOJ, and DOE), SLED, and DOD
* COMM Sales QBRs
* Mid Market Americas East
* Mid Market Americas West
* Mid Market APAC & EMEA
* SMB Americas
* SMB APAC & EMEA
* Who:
* All Strategic Account Leaders (SALs) and Account Executives (AEs), Solution Architects (SAs), Technical Account Managers (TAMs), and Channel Account Managers
* All Sales, Channel, and Customer Success Managers
* 1-2 delegates from the following teams will participate
* Field Marketing
* Demand Generation (Sales Dev)
* Product Marketing
* Product / Engineering
* Alliances
* Sales Ops
* Sales Strategy
* Field Enablement
* Finance
* Field executives (VP+) will participate in these sessions when possible
* In addition, Quarterly Sales Leadership QBRs will be held following the regional QBRs
* Participants:
* Chief Revenue Officer (CRO)
* CRO direct reports
* RDs and ASMs
* Senior Director of Revenue Marketing
* VP of Field Ops direct reports
* [QBR Google drive folder](https://drive.google.com/drive/u/0/folders/1QAWFYxT2-NzWpOUodepbl0O6zfsMxJGL)
#### Field Operations QBR Request Process
##### Intake Process:
1. Sales Ops provides representative coverage at each QBR, and captures a list of Sales Asks/Requests (google sheet/notes) with Links to individual QBR presentations.
1. Following each QBR session, relevant Sales asks are converted to Issues using the [Field-Ops-QBR-Request](https://gitlab.com/gitlab-com/sales-team/field-operations/sales-operations/issues/new?issuable_template=FieldOpsQBR) Template.
- Issues opened through above template, will automatically apply the (global) `QBR` label to ensure they’re categorized appropriately for review.
##### Execution and Tracking:
All new QBR request to the Sales Operations team are tracked and managed as issues within the Sales Operations Project. The [Field Ops QBR Requests board](https://gitlab.com/gitlab-com/sales-team/field-operations/sales-operations/-/boards/1433489?&label_name[]=FY20-Q4-QBR&label_name[]=QBR) tracks the status of these Issues.
If you need more immediate attention please send a message with a link to the issue you created in the `#sales-support` Slack channel.
1. **New requests** start with the project label `SalesOps::New_Request`, which should be auto-assigned if the template was used. Note these should still be **unassigned**.
1. Issues are then moved to `SalesOps::Triage` where they are **triaged** to the correct Sales Ops team (Sales Ops, CS, Deal Desk, Sales Systems), who will determine if there is adequate detail to plan and prioritize the work.
- Is the problem statement clear?
- Is the impact/value understood?
1. Issues will then be moved to one of the following:
- `SalesOps::Backlog` - For future scheduling, sequencing, or implementation.
- `SalesOps::Transferred` - Issues related to teams other than Sales Ops.
- `SalesOps::Assigned` - for **urgent** requests or quick-wins.
- `SalesOps::Declined` - in some cases Sales Ops may directly decline the request.
1. From the backlog issues will be moved to:
- `SalesOps::Assigned` - Issue is assigned to a team member and being executed.
- `SalesOps::Declined` - If the backlog issue can no longer be accommodated, no longer makes sense to do, etc. it should be moved to declined, and then **closed**.
1. Once **completed**, issues should be moved to `SalesOps::Completed`, and then **closed**.
### Forecasting
Executive Cadence:
Forecasts are summarized weekly in Clari and shared formally in the Revenue Meeting or asynchronously on weeks that meeting does not take place.
Pipeline, deal status, next steps and account plans should always be current.
Dashboards and reports based on SFDC are considered current at any time.
- At any time, Clari is considered the current forecast.
Weekly after Tuesday evening, reviews from weekly team meetings will all be complete as well and is a good time to check and post any questions.
- Any questions should be added to the Revenue Meeting agenda and they will be answered asynchronously in that doc on weeks there is not a meeting.
- Every other week: Revenue meeting is a live forum for discussion of the entire GTM business and funnel including the forecast and key topics on the agenda.
Team Cadence:
The Regional Director/Vice President of each team will establish weekly due date/time for your forecasts submissions.
The RD/VP will be responsible for using your data for forecast the following:
* Net IACV Commit: this is your Gross IACV Commit minus your Renewal Loss Commit.
* Net IACV Best Case: this is your Gross IACV Best Case minus your Renewal Loss Best Case.
* Net IACV 50/50: this value serves as what you believe will be the actual forecast for your team. If you consider the Commit as the floor and Best Case as the ceiling, then the 50-50 is what is the most likely outcome.
(Note that the above requires Renewal Loss to be forecasted)
Please watch the following videos on how to submit your [IACV forecast](https://drive.google.com/open?id=1b42doQGZ1H-3Yi_8boGF5wmk-7Fb7SL-) and your [Renewal ACV forecast](https://drive.google.com/open?id=1X8LRZVmC4Q4FQ__GiCGsG1Xq6SwZagqc).
The following sections provide you with additional information on our forecasting methodologies and practices.
#### Opportunity Management Guidelines
* **All opportunities in stage 2-Scoping or later** must complete **ALL 5 Opportunity Overview** fields in Salesforce (or Clari) as part of the `Command Plan`:
1. **Why Now?** - *What is the compelling event? Why does the customer need to make the purchase now including both qualitative and quantitative implications?*
1. **Primary Value Driver** - *What is the primary business problem that the customer is trying to solve (even if GitLab didn't exist) that is causing the economic buyer to allocate discretionary funds to solve?*
1. **Use Case(s)** - *What is the use case(s) that the customer is pursuing to achieve the above value driver(s)?*
1. **Why GitLab?** - *Why is the customer choosing GitLab over the competition? What are GitLab's key differentiators from the customer's perspective?*
1. **Why Do Anything At All?** - *What are the negative consequences if the customer does nothing? What happens if the customer doesn’t do this deal on the forecasted timeline?*
* In addition, all such opportunities that are at or above defined IACV thresholds (**$50K+ for Enterprise**, **$20K+ for Mid-Market**, and **$10K+ for SMB**) must also complete the following fields in the `Command Plan`:
- **8 MEDDPICC** fields - see details [here](/handbook/sales/#capturing-meddpicc-questions-for-deeper-qualification)
- **3 Close Plan Details** fields
- **Close Plan** - *What is the full beginning to end close plan with dates (day by day or week by week)?*
- **Risks** - *What is the biggest risk with this opportunity? What would be the possible reasons for why the deal doesn't come in on time? What are we doing to proactively address key risks?*
- **Help** - *How can the extended GitLab team help (i.e. Product Management/Engineering needs, Legal requirements, Deal Desk, Finance, Execs)?*
* Note: Command Plans are capped at 5000 characters in Salesforce to encourage sales team members to be crisp and succinct. To do so, the Command Plan should focus on future-looking plans and remove details that are no longer relevant to the current close plan. For information you'd like to remove from the Command Plan but keep for historical purposes, please add that information as a new activity record on the opportunity.
#### Forecast Category and Renewal Forecast Category Fields
* **Forecast Category** will be used when forecasting any opportunity with Incremental IACV. For example, if you are submitting a New Business, Add On Business, or Renewal opportunity to your forecast, the IACV portion of the opportunity will be included in your number.
* **Renewal Forecast Category** will be used when forecasting any renewal opportunities. In these cases, the Renewal ACV portion of the deal will be included into your forecast number.
#### Default Salesforce Stage to Forecast Category and Renewal Forecast Category Mapping
| **Opportunity Stage** | **Default Forecast Category** | **Renewal Forecast Category**
| -------- | -------- | -------- |
| 00-Pre Opportunity | Omitted | NULL |
| 0-Pending Acceptance | Omitted | Commit |
| 1-Discovery | Pipeline | Commit |
| 2-Scoping | Pipeline | Commit |
| 3-Technical Evaluation | Pipeline | Commit |
| 4-Proposal | Best Case | Commit |
| 5-Negotiating | Commit | Commit |
| 6-Awaiting Signature | Commit | Commit |
| 7-Closing | Commit | Commit |
| Closed Won | Closed | Closed |
| 8-Closed Lost | Omitted | Omitted |
| 9-Unqualified | Omitted | NULL |
| 10-Duplicate | Omitted | NULL |
#### Forecast Categories Definitions
There are two types of categories we review when your forecasts are pushed to Clari:
* **Closed**: Closed includes only those opportunities that are "Closed Won" only. In forecasting, Closed includes Closed Won.
* **Commit**: Commit includes opportunities that you feel have a 95-100% probability to close in the given period as represented by the Close Date. If you do not believe it will close in that period, it should not be a Commit. For forecasting purposes, Commit will include "Closed + Commit Deals".
* **Best Case**: Best Case includes opportunities that have a 50% and above probability to close in a period. These deals have a realistic possibility to close; however, only if certain events occur. The path to close should not be based on some miraculous event, as there should a credible plan for this deal to close this period. For forecasting purposes, Best Case includes Closed + Commit + Best Case.
* **Pipeline**: Pipeline consists of deals that are not going to close in the quarter, but should be expected to close in the next few quarters. You should not have deals that are in the Pipeline Forecast Stage with a close date in the current period. For forecasting, Pipeline includes Closed + Commit + Best Case + Pipeline.
* **Omitted**: These are not included in the forecast and should reflect very early stage deals in 0-Pending Acceptance stage or those in a Lost, Unqualified, or Duplicate stage.
#### Overriding Forecast Categories
Early in a quarter, you may not have many opportunities in Stage 4 and beyond (Best Case and up).
With that in mind, you will have the ability to override the Forecast Category and Renewal Forecast Category for your opportunities in both Salesforce and Clari.
Note: this does not apply to Commercial SMB and Mid-Market forecasting.
In Salesforce, go to the Opportunities Home tab:
1. Select either the *My Forecast* opportunity list view OR the *My Forecast* report.
2. Click on the Opportunity Name of the record you want to update.
3. Change the **Forecast Category** and/or **Renewal Forecast Category** fields.
4. Click Save.
In Clari, you will update records individually via Opportunity tab:
1. Select the *CQ: Open Deals*, *CQ: Commit Deals*, *CQ: Best Case* or *CQ: Open Renewals* view
2. You can update the opportunities directly within the opportunity grid. Just to to the field you want to update and double click.
2. Click on the row of the opportunity you want to edit. On the right, you should see additional details (if you don’t, click on the *Toggle Details* button).
2. In the Details tab, scroll to Forecast Category and double-click the field to edit. Select the desired category.
3. Click Save.
##### Opportunity Splits
Credit splits are allowed at an opportunity level and can be requested by native-quota carrying salespeople. Opportunity splits must be requested before any work is shared on an opportunity and approved prior to the closed won date. Opportunity splits must be documented in Chatter on the opportunity and require approval from Regional Director and VP. Under no circumstances will double compensation (more than 100% of deal value) on the same deal will be allowed.
* **Sales Team**
To request an opportunity split, a sales rep should indicate the split in Chatter, tag the ASM(s), RD(s), and VP(s) for each rep for approval, and tag Sales Support to make the update once approved. Opportunity splits should be requested before any work is shared on the opportunity.
* **SalesOps Team**
On receiving an approved request for the split, SalesOps team will update the Opportunity Splits section of the opportunity with the split details. On completion SalesOps team will cc Commissions team and Clari team to process these splits in the systems accordingly.
* **CaptivateIQ
Opportunity split crediting will automatically be calculated in the commissions system through the Opportunity Splits section. The Commissions team will ensure that the commissions are calculated accurately based on the split % and confirm in Chatter on the opportunity.
* **Clari**
Currently, our Clari instance does not support Opportunity Splits, so credit will be based on Opportunity Owner (this will not impact compensation). We are looking to enable this feature by FY21Q2.
##### Advantages to Updating Opps in Clari
In Clari, we have provided a simplified layout meaning that we have designed the **Details** tab to include the most important fields that an RD/VP will review when determining whether they will include your opportunity in their regional forecast. **Purchasing Plan, MEDDPICC, Next Steps** are atop this simplified layout. You won’t have to navigate through various sections of Salesforce to enter the most important details. What's more is that sales leadership will use this exact same view when reviewing your opportunities. So while you might be more familiar with updating opportunity records in Salesforce, over time, you should find updating in Clari will prove much more convenient.
#### Clari for Salespeople Instructional Videos
The following instructional videos are located on the GitLab unfiltered YouTube channel as private videos. If you have trouble viewing these videos please refer to [this page](https://about.gitlab.com/handbook/communication/youtube/#unable-to-view-a-video-on-youtube) on how to access GitLab unfiltered.
* **Opportunity Grid Overview**
- [Watch this 5 minute overview](https://youtu.be/Yg78GHckpv4) of the opportunity grid in Clari, what you're seeing, how to update deals, and what is at your disposal. Learn how to save time and improve productivity by being able to update multiple opportunities at once.
* **The Details & Insights Panel**
- [Watch this 8 minute video](https://youtu.be/_m3gn1kki20) looking at the activity with a deal, diving into the CRM score, also highlighting where the Force Management fields are located.
* **Additional Functionality**
- [Watch this 5 minute video](https://youtu.be/16-5cvEODAU) to learn more about Clari Connect, Open in Salesforce, LinkedIn Sales Navigator, and best practices.
* **Introduction to Gross and Net IACV**
- [Watch this 8 minute video](https://youtu.be/4LEGrMs4KEo) for an introduction on where to forecast using Gross IACV and Renewal fields and how they relate to Net IACV population.
* **Overview of Renewals**
- [Watch this 5 minute video](https://youtu.be/rh4i8Gg_4l0) for a further look at the Gross, TCV and Renewal Tabs as well as how to view past and future quarters.
* **GitLab Forecasting 101**
- [Watch the 20 minute video](https://youtu.be/3TGiyNHV4_k) on how we use Clari at GitLab led by Area Sales Manager Adam Johnson
* **Gitlab Renewals Forecasting 101**
- [Watch the 2 minute video](https://youtu.be/1aNxkKpoblA) on how to forecast renewals using renewal loss commit and renewal loss best case.
* **Dashboards**
- [Watch this 9 minute video](https://youtu.be/cOURhIQkj7Y) for an overview of the 1:1 Rep/Manager Dashboard.
* **Mobile App 101**
- [Watch the 8 minute video](https://youtu.be/k-WMeeVZW5A) overview of the mobile app.
* **Clari for Salespeople Quiz**
- Take this short quiz to [test your knowledge.](https://docs.google.com/forms/d/e/1FAIpQLSdTPFzDNACOKxJeY3PAzl-JEqG99Pe3ufAXFpgOd39YjUwsMw/viewform)
#### Forecasting and Sales Leaders
If you are a Sales Leader, will have additional access to the **Forecasting Tab** in Clari. You will see four tabs:
* **Net IACV**
* You will enter your Gross IACV Commit/Best Case and Renewal Loss Commit/Best Case in this tab.
* Gross IACV will be your bookings, a positive value; Renewal Loss will be for lost renewal ACV, represented by a negative value.
* The result will be your Net IACV, which will be your official value submitted.
* **Gross IACV**
* This will be a read only tab. You will see your rep’s quota, Won IACV, and pipeline coverage.
* **Renewal ACV**
* This will be a read only tab. You will see your rep’s Closed Won Renewal ACV, Commit, Best Case, Renewal Loss Commit, and Renewal Loss Best Case.
* **TCV**
* This will be a read only tab. You will see your rep’s Closed Won TCV, Commit, Best Case, and Pipeline.
##### Reviewing Forecasts
On the right of each tab, you will see a Toggle Details button.
You can click on this to expand the list of opportunities in the selected forecast category.You will have three options:
* Total: shows the combined deals for Closed + Open in that category (Closed, Commit, Best Case, or Pipeline)
* Closed: shows deals Closed Deals
* Open: shows open deals in that category
Click on the radio button for the type of opportunities you want to see (normally for forecasting calls with AEs, you will select “Open”). Then click “View Deals” to go to a full list of opportunities.
To overwrite your regional forecast:
1. In Clari, go to the Forecasting tab.
1. Go the tab of the metric you want to forecast (Gross IACV or Renewal ACV).
1. Go to Commit and override the value.
1. Add a note on why the adjustment made.
2. Repeat this process for Best Case.
1. Click Save.
##### Clari for Sales Leaders Instructional Videos
The following instructional videos are located on the GitLab unfiltered YouTube channel as private videos. If you have trouble viewing these videos please refer to [this page](https://about.gitlab.com/handbook/communication/youtube/#unable-to-view-a-video-on-youtube) on how to access GitLab unfiltered.
* **Opportunity Grid Overview**
- [Watch this 5 minute overview](https://youtu.be/Yg78GHckpv4) of the opportunity grid in Clari, what you're seeing, how to update deals, and what is at your disposal. Learn how to save time and improve productivity by being able to update multiple opportunities at once.
* **The Details & Insights Panel**
- [Watch this 6 minute video](https://youtu.be/D9SxEyPtXSg) looking at the activity with a deal, diving into the CRM score, also highlighting where the Force Management fields are located.
* **Additional Functionality**
- [Watch this 5 minute video](https://youtu.be/io4ysgxkicQ) to learn more about Clari Connect, Open in Salesforce, LinkedIn Sales Navigator, and best practices.
* **Dashboards**
- [Watch this 8 minute video](https://youtu.be/z_LT3JaR-78) for an overview of the 1:1 Rep/Manager Dashboard.
* **Introduction to Gross and Net IACV**
- [Watch this 8 minute video](https://youtu.be/BXJsB2Frjxk) for an introduction on where to forecast using Gross IACV and Renewal fields and how they relate to Net IACV population.
* **Overview of Renewals**
- [Watch this 5 minute video](https://youtu.be/3b2Y3nY7-QY) for a further look at the Gross, TCV and Renewal Tabs as well as how to view past and future quarters.
##### Clari Analytics Instructional Videos
* **Pulse & Flow Analytics**
- [Watch the 6 minute video](https://youtu.be/2BcKnEJBJvY) and learn how to set up filters for the Pulse view and explanation of AI predictions.
* **Pulse - Past & Future Performance**
- [Watch the 7 minute video](https://youtu.be/NpifuNEfk_Q) to understand changes over time by looking back up to one year or forward by up to one quarter. This feature helps you make better predictions, understand the AI, and visualize the big picture regarding your forecast accuracy, vs. the AI and your team.
* **Trends**
- [Watch the 10 minute video](https://youtu.be/dOAKr9DyTYo) for a deep dive on past & current trends, AI predictions, and how to interpret the results.
* **Flow**
- [Watch the 11 minute video](https://youtu.be/QXW9roJ552M) to understand how to drill down into your current quarter deals and next quarter.
* **Clari for Sales Leaders Quiz**
- Take this short quiz to [test your knowledge.](https://docs.google.com/forms/d/e/1FAIpQLSejL3MMRk_i8XcMykkhhswRDMaHgcj78UHWRDaYtmtBJpar6A/viewform)
#### Forecast Terminology
Please use these terms correctly and don't introduce other words. Apart from the above the company uses two other terms:
* **Plan**: Our yearly operating plan that is our promise to the board. The IACV number has a 50% of being too low and 50% chance of being too high but we should always hit the TCV - Opex number.
* **Forecast**: Our latest estimate that has a 50% of being too low and 50% chance of being too high.
## Definitions
### Customer Definitions for External Reporting
### Customer
We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. In the case of the U.S. government, we count U.S. government departments and major agencies as unique subscription customers.
- [Sisense Dashboard - Breakdown of Customers by ARR buckets](https://app.periscopedata.com/app/gitlab/474959/Customer-Count-by-ARR-Buckets)
### First Order Customers
A First Order customer is a customer within an Account Family that makes the first subscription order for the Account Family in the period.
### Additional customer definitions for internal reporting
We define customers in the following categorical level of detail:
1. Subscription: A unique subscription contract with GitLab for which the term has not ended.
As customers become more sophisticated users of GitLab the number of subscriptions may decline over time as Accounts and Parents consolidate subscriptions to gain more productivity.
1. Account: An organization that controls multiple subscriptions that have been purchased under a group with common leadership.
In the case of the U.S. government, we count U.S. government departments and major agencies as a unique account.
1. Parent: An accumulation of Accounts under an organization with common ownership.
In the case of the U.S. government, we count U.S. government major agencies as a unique parent account. (In Salesforce this is the `Ultimate Parent Account` field)
Because "customer" can have three different meanings whenever customer is used in presenting data it must be qualified by the type of customer.
The default description is parent. When the default is used no further description is required.
When account or subscription is being reported then the title or field description on the chart must be added to call out the basis for reporting.
Metrics that are based on customer data should also carry a clarifying description. For clarity parent will be the only customer type used for external reporting.
### Connected New Customers
A connected new customer is the first new subscription order with an Account that is related to an existing customer Account Family (regardless of relative position in corporate hierarchy) and the iACV related to this new customer is considered "Connected New".
#### Customer Segmentation
Customer segmentation follows the segmentation as laid out in the [Business Operations Handbook](/handbook/business-ops/resources/#segmentation) at the [Parent Account level](#customers).
#### Customer Counts
If an account was active at any point in time during the proposed timeframe it is counted as active.
For example, an account that is active from March 2019 to May 2019 but is inactive from June 2019-on is counted for CY2019, FY2020 (which runs from February 2019-January 2020), FY20-Q1, and FY20-Q2; it is not counted in FY20-Q3 or FY20-Q4.
#### Annual Recurring Revenue (ARR)
GitLab defines ARR as the annual run-rate revenue of subscription agreements from all customers in a given month. GitLab calculates ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent GitLab's GAAP revenue on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue. ARR and MRR calculates subscription fees normalized to a monthly value, and does not include one-time or usage fees.
ARR vs Plan can be found [in Sisense](https://app.periscopedata.com/app/gitlab/446004/Sales-KPIs?widget=6933786&udv=0).
#### Monthly Recurring Revenue (MRR)
Monthly recurring revenue from subscriptions that are active from all customers in a given month.
#### Rep Productivity
The average amount of annualized IACV a native quota carrying sales rep produces in a given month
formula: (IACV / # of native quota carrying reps adjusted for ramp time) * 12 months. See [Quota Ramp](/handbook/sales/commissions/#sales-rep-iacv-quota-ramp)
The IACV used in this calculation only includes opportunities owned by quota carrying sales reps (not by a manager, director, or VP).
Additionally, opportunities that represent web portal purchases are split out separately.
##### Measuring Sales Rep Productivity
The primary metric when measuring rep productivity for only for quota attainment but also for compensation is the Gross Incremental Annual Contract Value (Gross IACV).
Is is important to remember that while renewals are not a part of comp or quota attainment, renewing customers is still very important aspect of our business.
Rep Productivity is defined as IACV divided by the number of reps of a particular type (i.e. SAL, MM AEs, SMB Customer Advocates).
Web portal purchases are split out separately.
Another measured KPI is Rep Productivity (as defined above) divided by On Target Income.
### Average Sales Price (ASP)
IACV per won deal. This metric can be reported against various dimensions (e.g. ASP by customer segment, cohort, sales channel, territory, etc.)
#### Annual Contract Value (ACV)
Value of **all** bookings from new and existing customers that will result in recurring revenue over the next 12 months less any credits, lost renewals, downgrades or any other decrease to annual recurring revenue.
Excluded from ACV are bookings that are non-recurring such as professional services, training and non-recurring engineering fees (PCV).
#### Incremental Annual Contract Value (IACV)
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months less any credits, lost renewals, downgrades or any other decrease to annual recurring revenue.
Excluded from IACV are bookings that are non-recurring such as professional services, training and non-recurring engineering fees (PCV). Also equals ACV less renewals.
However, bookings related to true-up licenses, although non-recurring, are included in IACV because the source of the true-ups are additional users which will result in recurring revenue.
IACV may relate to future periods (within twelve months).
IACV can be calculated by adding First Order IACV + Connected New IACV + Growth IACV.
Beginning ARR + IACV may not equal ending ARR due to the following reasons:
1. True Ups: true-ups are included in IACV but not in the change in ARR (Delta ARR)
1. Timing: the change in ARR only includes contracts that have started where as IACV is based on the close date so the difference in the close dates of the contracts driving the IACV to the subscription start date impacts the difference
3. Co-term: if contract value is less than 12 months the change in ARR will show the 12 month value and IACV will show the value of the contract.
End ARR - Beginning ARR (Delta ARR) = iACV - [True Ups] + [Coterm difference] +/- [Timing difference]
The final IACV value comes from the Net_IACV field in the Salesforce opportunities table.
This analysis can be found [in Sisense](https://app.periscopedata.com/app/gitlab/446004/Sales-KPIs?widget=6933430&udv=0).
##### How Incremental ACV is Calculated
Incremental IACV can be calculated for **new and add on business** in the following ways:
| **Type** | **Opportunity Term** | **Amount/TCV** | **Incremental ACV** | **Explanation** |
| ------ | ------ | ------ | ------ | ------ |
| New Business | 12 months | $120,000 | $120,000 | New customer signs for less than or equal to 12 months is IACV. |
| New Business | 24 months | $240,000 | $120,000 | New customer signs up for 24 months, so while Amount/TCV is $240,000, only the first 12 months counts towards IACV. |
| Add On Business | 5 months | $40,000 | $40,000 | Existing customer signs for less than or equal to 12 months is IACV. |
| Add On Business | 16 months | $16,000 | $12,000 | Existing customer signs for more than 12 months, so while Amount/TCV is for the entire 16 months at $16,000, only the first 12 months counts towards IACV. |
When calculating Incremental ACV against **renewal** opportunities, we consider the Renewal ACV (please see "[How Renewal ACV is Calculated](/handbook/sales/#renewals-acv)" for more details). In the following scenario, we will look at how IACV is calculated:
| **Type** | **Opportunity Term** | **ACV** | **Renewal ACV** | **Incremental ACV** | **Explanation** |
| ------ | ------ | ------ | ------ | ------ | ------ |
| New Business | 12 months | $120,000 | $0 | $120,000 | New customer signs for less than or equal to 12 months is IACV. |
| Add On Business | 5 months | $50,000 | $0 | $50,000 | Customer add on at less than or equal to 12 months is IACV. |
| Renewal | 12 months | $240,000 | $170,000 | $70,000 | The IACV from the new and add on business from the previous year total $170,000, while the ACV of the renewal opp is $240,000. The delta is IACV of $70,000. |
Note that in the above scenario, while you are only paid for the first 5 months for the upsell, you are paid for the remaining 7 months on the renewal, meaning you are paid the entire 12 month upsell ($120,000 IACV) over two separate opportunities.
**Contractual Ramps:** this happens when a customer wants to increase the number of users over time on a **single** contract.
* A customer purchased 1,000 Starter seats at $48,000 for year 1 of a **multi-year** subscription.
* Year 2, they have agreed to purchase 2,000 seats at $96,000.
* Previously, we would take the average of the two years as the IACV, which would have been $72,000.
* Due to stricter requirements regarding revenue recognition, effective **July 1, 2019**, the calculation is no longer the average, but the actual year first year IACV. This ensures alignment between our bookings and revenue recognition.
* In this case, the IACV now would be $48,000.
**Contract Resets/Restarts:** this happens when a customer wants to restart their subscription in the middle of term.
* A customer purchased a subscription for $12,000 in January. In April, they decide to upgrade to a $24,000 annual package, but also restart their term to end 12 months from April, meaning the end date would now be March 31 and not December 31.
* We would cancel the remaining subscription as of April 1 through December 31. This will result in a credit of $9,000, which will be applied to the new subscription.
* By definition, the reset should be tagged as a Renewal, since we are extending the customer's subscription, albeit early. Any increase in subscription fees would result in IACV.
| **Type** | **Opportunity Term** | **Dates** | **ACV** | **Renewal ACV** | **Incremental ACV** | **Explanation** |
| ------ | ------ | ------ | ------ | ------ | ------ | ------ |
| New Business | 12 months | Jan 1 - Dec 31 | $12,000 | $0 | $12,000 | New customer signs for 12 month plan at $12,000 IACV |
| New Business | 9 months | Apr 1 - Dec 31 | ($9,000) | $0 | ($9,000) | Credit opp: Customer wants to upgrade to $24,000, but also wants to reset their term starting Apr 1 |
| Renewal | 12 months | Apr 1 - Mar 30 | $24,000 | $3,000 | $21,000 | Contract reset is closed. Renewal ACV is only $3,000 ($12,000 - $9,000). |
**Consolidation of Subscriptions:** this happens when a customer wants to combine multiple subscriptions into one.
In this case, we would total all current Renewal ACV into a single renewal opportunity.
* A customer purchased a subscription for $12,000 in January for 12 months.
* In July, they purchase a second subscription, this time for $24,000 for 12 months.
* They want to co-term both subscriptions to end in December.
| **Type** | **Opportunity Term** | **Dates** | **ACV** | **Renewal ACV** | **Incremental ACV** | **Explanation** |
| ------ | ------ | ------ | ------ | ------ | ------ | ------ |
| New Business (Sub 1) | 12 months | Jan 1 - Dec 31 | $12,000 | $0 | $12,000 | New customer signs for 12 month plan at $12,000 IACV |
| New Business (Sub 2) | 12 months | Jul 1 - Jun 30 | $12,000 | $0 | $12,000 | New customer signs for 12 month plan at $12,000 IACV |
| New Business (Sub 2) | 6 months | Jan 1 - Jun 30 | ($6,000) | $0 | ($6,000) | Credit opp: Customer will cancel this subscription for the remainder of term to coterminate their subscriptions |
| Renewal (Sub 1 + Sub 2) | 12 months | Jan 1 - Dec 31 | $24,000 | $18,000 | $6,000 | Renewal consoildation will take the full 12 months for Sub 1 and the remaining credit for Sub 2 ($12,000 - $6,000). |
**Splitting Subscriptions:** this happens when a customer wants to split a single subscription into multiple subscriptions.
In this case, we would split the renewal ACV from the single renewal opp into multiple opportunities:
* A customer purchased a subscription for $12,000 in January for 12 months.
* In July, they purchase a second subscription, this time for $24,000 for 12 months.
* They want to co-term both subscriptions to end in December.
| **Type** | **Opportunity Term** | **Dates** | **ACV** | **Renewal ACV** | **Incremental ACV** | **Explanation** |
| ------ | ------ | ------ | ------ | ------ | ------ | ------ |
| New Business | 12 months | Jan 1 - Dec 31 | $12,000 | $0 | $12,000 | New customer signs for 12 month plan at $12,000 IACV |
| Renewal Business (Sub 1) | 12 months | Jan 1 - Dec 31 | $3,000 | $3,000 | $0 | Customer is taking 1/4 of users and creating new subscription. $3,000 is the renewal ACV from the original $12,000. |
| Renewal Business (Sub 2) | 6 months | Jan 1 - Jun Dec 31 | $9,000 | $9,000 | $0 | Customer is taking 3/4 of users and creating new subscription. $9,000 is the renewal ACV from the original $12,000. |
In the above scenario, the total Renewal ACV of two new renewal opps should total the IACV of the original opportunity.
#### Gross Incremental Annual Contract Value (Gross IACV)
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months. Gross IACV includes true-ups and refunds.
#### Net Incremental Annual Contract Value (Net IACV)
Value of new bookings from new and existing customers that will result in recurring revenue over the next 12 months LESS any credits, lost renewals, downgrades or any other decrease to annual recurring revenue
#### Net Incremental Annual Contract Value - Growth (Net IACV - Growth)
Value of bookings from existing customers that will result in recurring revenue over the next 12 months LESS any credits, lost renewals, downgrades or any other decrease to annual recurring revenue
#### Growth Incremental Annual Contract Value (Growth IACV)
Contract value from subscription orders sold into a specific Account that is not the first subscription order sold into that specific Account. Contract value that increases at the time of subscription renewal which can come from a combination of new seats + true-ups + upgrades/downgrades + change in discount
#### Account Family
The collection of all Salesforce Accounts that roll up to the same Ultimate Parent Account.
#### First Order Incremental Annual Contract Value (First Order IACV)
Contract value from the first subscription order sold into a Account Family.
#### Connected New Incremental Annual Contract Value (Connected New IACV)
Contract value from the first new subscription order with an Account that is related to an existing customer Account Family (regardless of relative position in corporate hierarchy)
#### Delta ARR
The change in annual recurring revenue (ARR) from one period to the next.
When looking at a time horizon of the next twelve months delta ARR will equal IACV except:
1. True-ups are included in IACV but not in delta ARR
1. Timing: delta ARR only includes contracts that have started where as IACV is based on the close date so the difference in the close dates of the contracts driving the IACV to the subscription start date impacts the difference
1. Co-term: if contract value is less than 12 months delta ARR will show the 12 month value and IACV will show the value of the contract.
Delta ARR = iACV - [True Ups] + [Coterm difference] +/- [Timing differences]
#### ProServe Contract Value (PCV)
{: #pcv}
Contract value that is not considered a subscription and the work is performed by the Professional Services team.