Metrics
Net Revenue Retention (NRR)
Also known as: NRR, Net dollar retention, NDR
Net Revenue Retention measures revenue from a cohort of existing customers after twelve months, including expansion, contraction and churn, divided by that cohort's starting revenue. New customers are excluded.
NRR above 100% means the existing base grows without any new customers, which compounds powerfully and is why high-NRR companies command premium multiples.
Best-in-class infrastructure and data companies report 120–130%. Seat-based tools serving stable headcount rarely exceed 110% because expansion depends on customer hiring.
The metric is easily flattered by cohort selection, so read the definition in the footnotes before comparing across companies.
Example
A cohort worth $10M that grows to $12.4M after churn and expansion has 124% NRR.