What is Gross New ARR?
Gross new ARR measures how much recurring revenue you added, ignoring what you lost. It isolates the acquisition and expansion engine.
Read against net new ARR, it separates a growth problem from a retention problem, which need very different fixes.
Short answer
Gross new ARR is the total annual recurring revenue added in a period from new business and expansion, before any churn or contraction is subtracted. It measures the acquisition and growth engine's raw output, separate from retention. Comparing gross new ARR to net new ARR reveals how much of your growth is being eroded by churn, isolating where the real problem lies.
Key takeaways
- ARR added from new business and expansion.
- Measured before subtracting churn.
- Isolates acquisition and growth output.
- Compared to net new ARR to reveal churn drag.
Why it matters
Separating gross from net new ARR tells you whether weak growth comes from not adding enough or from losing too much. That distinction points to whether to invest in acquisition or retention.
How Ardovo handles it
Ardovo tracks gross and net new ARR side by side, so Rook can show whether a growth shortfall is an acquisition problem or a churn problem and direct effort to the real cause.
Frequently asked questions
What is gross new ARR?
It is the total annual recurring revenue added in a period from new business and expansion, before subtracting churn or contraction. It measures the raw output of your acquisition and growth engine, separate from retention.
What is the difference between gross and net new ARR?
Gross new ARR counts only additions from new business and expansion. Net new ARR subtracts churn and contraction. The gap between them shows how much churn is eroding your growth, separating an acquisition problem from a retention one.
Why track gross new ARR separately?
Because it isolates whether weak growth comes from not adding enough or from losing too much. If gross new ARR is strong but net is weak, the problem is churn; if gross itself is weak, the problem is acquisition.