Net Revenue Retention (NRR)

What a cohort of customers is worth a year later as a share of what it was worth at the start: opening ARR plus expansion less churn, over opening ARR. Above 100% means existing customers grow faster than they leave, and the company would grow with no new sales at all. Read beside gross revenue retention, which excludes expansion and cannot exceed 100%; a strong net figure over a weak gross one is expansion papering over churn.

Where Net Revenue Retention (NRR) comes up

SaaS Operating Models: ARR, Sales Capacity, Billings and the Metrics That FollowA subscription business is a stock moved by flows, sold by a team with a capacity, and paid for before it is delivered.Read the guide — 11 min

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SaaS operating model guide

Related Technology terms

ARR (Annual Recurring Revenue)CAC Payback LTV to CAC Magic Number

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