ARR Explanation
ARR Explanation

H1 2025 ARR — Board Explanation

2025-01-012025-06-30

ARR grew from $1.158M to $1.308M (+13.0%) on the back of two new logos, one expansion, and a contractual uplift, partially offset by one churn.

Summary

  • Opening ARR (Jan 1)$1,158,000
  • + New logos (Cobalt, Sycamore)+$120,000
  • + Expansion (Polaris amendment)+$12,000
  • + Contractual uplift (Atlas)+$11,520
  • − Churn (Helios)-$180,000
  • + Other movements+$186,480
  • Closing ARR (Jun 30)$1,308,000

Talking points

  1. 1

    Helios churn was a known risk flagged in Q4 2024. The Order Form for that account contained a 60-day non-renewal notice clause, exercised on March 12 and traceable to the cancellation email in the evidence drawer.

  2. 2

    Polaris expansion is contract-evidenced — Amendment 1 raised the annual fee from $84k to $96k effective March 15. Every dollar of the $12k uplift is tied to a clause.

  3. 3

    Atlas uplift is a contractual 4% on a multi-year deal, not a price negotiation. The clause is in MSA §7 and the system applied it automatically on the anniversary date.

  4. 4

    Every movement on the bridge is one click away from the underlying contract language. There is no spreadsheet sitting between the CRM and the board.

Cross-reference any line back to its ARR movement or contract language.