Metrics & Performance
Net Revenue Retention (NRR)
The percentage of revenue retained from existing customers year-over-year, including upsells and expansions. NRR above 100% means existing customers are growing.
Net Revenue Retention (NRR), also called Net Dollar Retention (NDR), is the gold standard metric for SaaS business quality. It measures how much revenue you retain from your existing customer base over 12 months, including expansions (upsells, seat additions) and losses (churn, downgrades). NRR formula: (Starting MRR + Expansion MRR - Churned MRR - Contraction MRR) / Starting MRR. An NRR of 100% means you're replacing all churned revenue with expansions. Above 100% means existing customers are spending more — your business grows even with zero new customer acquisition. Best-in-class SaaS companies (Snowflake, Datadog, Twilio at their peaks) have achieved NRR of 130-160%. VCs strongly prefer companies with NRR above 120% — it signals product stickiness and organic growth potential.