Net revenue retention
Revenue from your existing customer base this period versus the same cohort last period, including expansion, contraction and churn.
Why it matters
One of the strongest signals in software. Above 100% means the business grows even if you never add another customer, which changes how investors value it.
A worked example
A cohort worth $1M a year ago is worth $1.2M today after upsells and churn. NRR is 120%.
What is typical
Above 100% is good, 120%+ is strong for enterprise software. Below 90% suggests a retention problem that more sales spend will not fix.
Related terms
ARR
Annual recurring revenue: the annualised value of contracted, recurring subscription revenue.
Read more →CAC
Customer acquisition cost: fully loaded sales and marketing spend divided by the number of new customers acquired in the same period.
Read more →Run your raise on this
VCTerminal models these terms on your real cap table, so you can see what a term sheet pays you before you sign it.
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