Net Revenue Retention

Definition

A metric measuring the percentage of recurring revenue retained from an existing customer cohort over a defined period, accounting for expansion, contraction, and churn. Net revenue retention above 100% indicates that revenue growth from existing customers outpaces losses, demonstrating negative churn and strong product-market fit. It is one of the most important indicators of SaaS business quality and is a primary driver of revenue-multiple valuations.

Related Terms

Natural Language Processing Net Asset Value Net Asset Value (NAV) Net Promoter Score (NPS) Net Revenue Retention (NRR)

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