Expansion and contraction ARR

Revenue movement from customers who keep an active subscription while changing spend. Expansion: more seats, upgrades, added products. Contraction: fewer seats, downgrades, dropped add-ons. The active-subscription requirement is what separates contraction from churn.

Expansion levers: value-based pricing, new products, upsell motions. Contraction usually traces to overselling at the start or weak onboarding, not to the renewal conversation where it surfaces.