Revenue Metrics

Revenue Churn

The percentage of recurring revenue lost in a period from cancellations and downgrades, excluding expansion.

Revenue churn focuses on the dollar impact of customer losses and contraction rather than simply counting departing accounts. A single large enterprise cancellation can produce high revenue churn even with low logo churn. Gross revenue churn includes only losses; net revenue churn also subtracts expansion revenue, which can make it negative in fast-growing businesses. Revenue churn is the primary input into gross revenue retention calculations. It is important to measure revenue churn cohort by cohort — customers who signed during a product-market fit crisis may churn far more than those acquired after a key improvement shipped. Separating voluntary churn from involuntary churn (failed payments) is also critical, since each has a different fix.