RPO (Remaining Performance Obligations)
RPO (Remaining Performance Obligations) is the total value of contracted revenue not yet recognised — both the invoiced part (deferred revenue) and the contracted-but-unbilled part. It is the fullest picture of revenue already under contract.
Formula
Worked example
A customer signs a 3-year, $300k contract billed annually. After the first invoice, deferred revenue shows up to $100k, but RPO shows the full remaining commitment — up to $300k less anything recognised.
RPO became the metric of record for enterprise SaaS under ASC 606, precisely because multi-year deals hide in the unbilled backlog that deferred revenue misses. Public companies disclose it quarterly; current RPO (cRPO) growth is the number analysts anchor on for near-term revenue.
RPO includes only committed amounts — usage-based upside, renewals not yet signed, and cancellable portions are excluded, which is what separates it from bookings enthusiasm.