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Rilakkuma's avatar

Thanks again for another excellent earnings review. Would you mind clarifying RPO vs APR? Are they exclusive and add up to total revenue? RPO includes open-ended contracts and APR counts those with an end date (though possible to renew). Thanks!

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WealthyReadings's avatar

Thanks a lot!

I guess you meant ARR? ARR is Annual Recurring Revenue so it's the dollar value of the next trailing 12 months contracted revenues.

RPOs are remaining performance obligations or the total value of contracts signed without any regard to payment date.

Say, I take a three-year contract worth $3M with $1M yearly payment.

RPO: $3M. ARR: $1M. Clear enough?

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Rilakkuma's avatar

Very clear; thank you for explaining.

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