Net revenue retention (NRR)

Net revenue retention (NRR) is the share of starting recurring revenue kept from existing customers over a period, after expansion, contraction and churn.

In practice

NRR shows whether the existing customer base grows or shrinks on its own, before any new customers. Above 100% means expansion outweighs losses. Because it mixes gains and losses, read it alongside gross revenue retention.

NRR = (starting recurring revenue + expansion − contraction − churned revenue) ÷ starting recurring revenue, for customers active at the start of the period. Exclude revenue from new customers won during the period, and state whether you use monthly or annual figures.

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