Net Revenue Retention (NRR)

Definition

The percentage of revenue retained from existing customers after accounting for churn and expansion revenue. It's the metric that separates SaaS unicorns from SaaS failures.

Example Usage

Our NRR is 120%, meaning we're growing revenue from existing customers despite losing 5% to churn.

Origin

SaaS metrics terminology, popularized by Bessemer Venture Partners

Fun Fact

NRR above 110% is considered exceptional in SaaS and typically correlates with IPO success

Source: SaaS Metrics Standards, Bessemer Venture Partners

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