NRR (Net Revenue Retention)

Definition

How much revenue from existing customers you retain (and grow through upsells) versus how much you lose to churn. The metric that determines if you're actually growing.

Example Usage

Our NRR is 115%, meaning we're keeping all our customers and growing revenue from them by 15%—which impresses investors.

Origin

Became standard SaaS metric in the 2010s as companies focused on efficiency

Fun Fact

An NRR above 120% is considered exceptional and a sign of exceptional product-market fit.

Source: SaaS performance metrics terminology

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