Net revenue retention

Intermediate 🚀 Startup / VC

Definition

The percentage of revenue retained from existing customers over a period, including expansion, downgrades, and churn. Above 100 percent means the customer base is growing even without new sales, which investors adore.

Example Usage

Our net revenue retention is 118 percent, so the existing customers are spending more even after churn.

Origin

Standard SaaS metric, developed in the subscription software industry.

Fun Fact

Net revenue retention is one of the few metrics where a number above 100 percent can make a company look better even if it is losing customers.

Source: SaaS metrics terminology

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