Net revenue retention measures how much revenue a software company keeps and grows from existing customers over a year, after upgrades, downgrades and cancellations. It is one of the most closely watched numbers in the industry.
How it is calculated
Take revenue from a group of customers a year ago and compare it with revenue from the same customers today.
Why above 100% matters
When the figure exceeds 100%, the existing customer base grows on its own, even before new customers are added.
What drives it
Product value that expands with use, clear upgrade paths and strong customer success teams all push retention higher.
Key takeaways
- How it is calculated
- Why above 100% matters
- What drives it
