Tabs Live & Configurable ARR
Last updated: May 28, 2026
How is Live ARR defined in Tabs?
Tabs ARR is annualized recurring revenue based on contractual obligations, not recognized revenue (ARR ≠ Monthly Recognized Revenue × 12).
Because ARR is a non-GAAP, forward-looking metric that is separate from GAAP revenue, it is not skewed by revenue adjustments (e.g., credit memos) or recognition patterns.
This separation lets you compare annualized GAAP revenue against ARR to surface:
Lagging events caused by implementation inefficiency, billing errors, adjustments, abuse, or fraud
Leading events driven by overage that indicate upgrade opportunities
How is ARR calculated in Tabs?
Tabs first converts non-monthly contract terms into a monthly run rate, then annualizes it. For example, $12,000 quarterly = $4,000 monthly → $4,000/month x 12 months = $48,000 ARR.
Because Tabs ARR is based on contractual obligations, ramped contracts reflect the run rate for each stage.
Product | Price | Frequency | Periods | ARR Configuration |
|---|---|---|---|---|
Platform Fee | Included | |||
• Trial (M1-M3) | $0 | Monthly | 3 | |
• Pilot (M4-M6) | $500 | Monthly | 3 | |
• Scale (M7-M12) | $1,000 | Monthly | 6 |
M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARR v2 | $0 | $0 | $0 | $6,000 | $6,000 | $6,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 | $12,000 |
Can I customize ARR in Tabs?
Unlike Recognized Revenue, ARR is a non-GAAP metric for financial planning & analysis, each company tailors its definition to fit its business model and reporting needs. To support both rigor and flexibility, Tabs introduces Configurable ARR for you to further define what contributes towards ARR without compromising industry best practices for defensible and transparent ARR reporting.
Product level configuration
You can configure non usage products at the product level using the ARR Toggle by going to Customer>Products>Edit Product.
Configuration:
On (Default): Include in ARR
Off: Exclude from ARR
Merchant level configuration
You can configure non-committed usage products at the merchant level from the Configure button on ARR Waterfall report page.
Committed Usage
Committed minimum: Included
Overage: Excluded
Non-committed Usage Configuration:
Exclude (Default): Variable usage without committed minimums (e.g., Pay-As-You-Go) contributes $0 to ARR regardless of actual usage revenue. Most conservative approach.
3-month average: ARR = trailing 3-month average of actual usage revenue x 12. Responsive to recent trends (captures changes within one quarter) but can be volatile for customers with spiky usage. (ie, M1 = M1 x 12, M2 = Avg(M1+M2) x 12, M3 = Avg(M1+M2+M3) x 12 and so on.)
6-month average: ARR = trailing 6-month average of actual usage revenue x 12. Smoothest view — absorbs quarterly spikes and dips. But lags behind rapid trend changes by up to two quarters. Best for mature, stable usage patterns. (ie, M1 = M1 x 12, M2 = Avg(M1+M2) x 12… M6 = Avg(M1+M2…+M6) x 12 and so on.)
Product | Price | Frequency | Periods | ARR Configuration |
|---|---|---|---|---|
API Calls | $1/unit | Monthly | 12 | Exclude/3-mth Ave/6-mth Avg |
Periods | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Actual Usage | $50 | $1,000 | $200 | $50 | $250 | $1,750 | $0 | $0 | $0 | $0 | $0 | $0 |
ARR: Exclude | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
ARR: 3-mth Avg | $600* | $6,300* | $5,000 | $5,000 | $2,000 | $8,200 | $8,200 | $8,200 | $8,200 | $8,200 | $8,200 | $8,200 |
ARR: 6-mth Avg | $600* | $6,300* | $5,000* | $3,900* | $3,720* | $6,600 | $6,600 | $6,600 | $6,600 | $6,600 | $6,600 | $6,600 |
*partial window — not enough history available
Can I see ARR waterfall movement details?
Without clicking or filtering, you can see which customers make up each waterfall movement bar by hovering over it. We also added customer ID to the ARR report export so users can expand reporting dimensions around customer segments as needed.
