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RPO

Remaining Performance Obligations — a GAAP-required disclosure under ASC 606 that captures the total contract value signed but not yet recognized as revenue, whether or not the cash has arrived. RPO is the most complete forward-looking revenue number on a subscription business because it includes both the invoiced backlog (deferred revenue on the balance sheet) and the uninvoiced backlog (signed contracts not yet billed). Tracking RPO growth alongside revenue growth and bookings reveals whether new business is accelerating or decelerating before the headline revenue line reflects the change. Often disclosed split between near-term (within twelve months) and long-term portions.

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Related terms

Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay

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