Accounting
RPO (Remaining Performance Obligations)
Quick definition
The ASC 606 disclosure of contracted revenue not yet recognized: deferred revenue plus unbilled contracted amounts.
Remaining Performance Obligations (RPO) is the ASC 606 measure of revenue a company is contractually owed but has not yet recognized. It equals deferred revenue (amounts already billed but not earned) plus the contracted value not yet billed, and it is typically split into a current portion (next 12 months) and a long-term portion. Public SaaS companies disclose RPO, and investors increasingly ask growth-stage startups for it because it is the auditable, standards-based version of revenue backlog and a strong signal of future revenue visibility.
Related accounting terms
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Frequently asked questions
- What is RPO (Remaining Performance Obligations)?
- Remaining Performance Obligations (RPO) is the ASC 606 measure of revenue a company is contractually owed but has not yet recognized. It equals deferred revenue (amounts already billed but not earned) plus the contracted value not yet billed, and it is typically split into a current portion (next 12 months) and a long-term portion. Public SaaS companies disclose RPO, and investors increasingly ask growth-stage startups for it because it is the auditable, standards-based version of revenue backlog and a strong signal of future revenue visibility.
- Why is RPO (Remaining Performance Obligations) important for startups?
- RPO (Remaining Performance Obligations) is a accounting concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does RPO (Remaining Performance Obligations) belong to?
- RPO (Remaining Performance Obligations) is a Accounting term in the StartupCFO finance glossary — alongside other accounting concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about RPO (Remaining Performance Obligations)?
- Beyond this definition, see the related accounting terms below, or explore StartupCFO's insights and tools that put RPO (Remaining Performance Obligations) in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
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