Upsell ARR is ARR that is signed to an existing customer that results in an increase in a customer’s ARR and is driven by the customer using a new product or service. This often involves a customer using a new type of product or service that the company offers, which results in an increase in their ARR.
ABC Co. has an ARR of $100,000. Vareto releases a new Workflow product and charges ABC Co. $20,000 per year. This results in an ARR of $120,000. Upsell ARR = $20,000