Net Revenue Retention (NRR)

Revenue from an existing cohort after upgrades, downgrades and churn, expressed as a percentage.

NRR tracks what happens to a cohort's revenue over twelve months, including expansion, contraction and churn, but excluding new customers. Above 100% means existing customers grew enough to more than offset losses.

NRR above 100% is powerful: revenue grows without acquiring anyone. Best-in-class SaaS reaches 120% or more. Below 90% means acquisition is filling a leaking bucket.

It is one of the strongest predictors of long-term value, which is why Series A investors ask for it early and weight it heavily.

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