ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
2
ABC Inc - ARR additions waterfall for FY22In USD
3
ParticularsQ1 FY22Q2 FY22Q2 FY22Q4 FY22
4
Starting ARR 25,000 33,000 41,000 49,000
5
Add: New ARR (New ARR from new clients) 10,000 11,000 12,000 13,000
6
Add: Expansion ARR (More ARR from existing clients) 1,000 1,500 2,000 2,500
7
Incremental ARR (New ARR + Expansion ARR) 11,000 12,500 14,000 15,500
8
9
Less: Churn ARR (ARR lost from customers leaving) -2,000 -3,000 -4,000 -5,000
10
Less: Contraction ARR (ARR decrease from existing customers due to downgrades) -1,000 -1,500 -2,000 -2,500
11
Lost ARR (Churn ARR + Contraction ARR) -3,000 -4,500 -6,000 -7,500
12
13
Net New ARR (Incremental ARR + Lost ARR) 8,000 8,000 8,000 8,000
14
Net Closing ARR (Closing ARR = Starting ARR + New ARR + Expansion ARR - Churn ARR - Contraction ARR)
 33,000 41,000 49,000 57,000
15
16
Sales & Marketing spends (Total of all sales & marketing efforts) 10,000 12,500 15,000 17,500
17
18
19
ABC Inc - Sales efficiency for FY23In USD
20
ParticularsQ1 FY22Q2 FY22Q2 FY22Q4 FY22
21
Incremental ARR (New ARR + Expansion ARR) 11,000 12,500 14,000 15,500
22
Sales & Marketing spends (Total of all sales & marketing efforts) 10,000 12,500 15,000 17,500
23
Gross sales efficiency (Incremental ARR divided by Sales & Marketing spends)110%100%93%89%
24
25
Net New ARR (Incremental ARR + Lost ARR) 8,000 8,000 8,000 8,000
26
Sales & Marketing spends (Total of all sales & marketing efforts) 10,000 12,500 15,000 17,500
27
Net sales efficiency (Net new ARR divided by Sales & Marketing spends)80%64%53%46%
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100