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Growth & SaaS metrics

Remaining Performance Obligation RPO

The total contracted revenue a company has signed but not yet recognized, including both billed and unbilled amounts.

Part of the Growth & SaaS Metrics course · Lesson 7 of 8
Formula
RPO = Deferred Revenue (billed, unrecognized) + Backlog (unbilled, contracted)

What it is

Remaining Performance Obligation is the dollar value of goods and services a company is contractually committed to deliver but has not yet recognized as revenue. It includes deferred revenue (amounts already billed) plus the unbilled portion of signed contracts (backlog). Unlike most SaaS metrics, RPO is a GAAP/IFRS disclosure required under the revenue-recognition standards, so it appears in the financial-statement notes.

Why it matters

RPO is one of the most reliable forward indicators of future revenue because it reflects binding contracts, not estimates. Growth in RPO, especially the portion due within 12 months (current RPO), signals demand that has not yet shown up in reported revenue. Because it is standardized, RPO is more comparable across companies than self-defined metrics like ARR.

How it's calculated

Sum the transaction price allocated to all unsatisfied (or partially satisfied) performance obligations across signed contracts; companies usually split it into current (within 12 months) and non-current portions.

How Quintarthai uses it

RPO is disclosed in a SaaS issuer's filing notes; you can research that filing alongside the revenue trend in the Financials tab of its company deep-analysis page.

Cross-border note. RPO is a required disclosure under both US GAAP (ASC 606) and IFRS 15, so it is one of the more comparable SaaS metrics across a US and a Canadian issuer; still match currency before comparing.

FAQ

How is RPO different from deferred revenue?
Deferred revenue is only the portion a company has already billed but not yet recognized. RPO is broader: it also includes the unbilled value of signed contracts, so RPO is usually larger than deferred revenue.
Why is RPO considered more reliable than ARR?
RPO is a standardized disclosure required under ASC 606 and IFRS 15 and reflects binding contracts. ARR is a self-defined, non-GAAP run-rate snapshot that each company can calculate differently.
Related terms
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