Revenue Metrics

Net Revenue Retention (NRR)

The percentage of recurring revenue retained from existing customers after accounting for churn, downgrades, and upgrades.

NRR is arguably the most important single metric for mature SaaS businesses. When NRR exceeds 100%, existing customers are collectively growing their spend — meaning the business can expand revenue even with zero new customer acquisition. This is called negative churn and it is the compounding engine behind the most durable SaaS businesses. NRR includes all movement in the existing customer base: expansions and upsells raise it, downgrades and cancellations lower it. Best-in-class B2B SaaS companies typically maintain NRR above 120%, while 100% is considered the floor for a healthy recurring revenue business. NRR below 100% means the business must replace lost revenue before it can grow, a structural headwind that compounds badly over time.