Net revenue retention (NRR)

Definition

The share of recurring revenue kept from existing customers in a year.

Why It Matters

Above 100% means the base grows without a single new customer, which is why subscription buyers pay premium multiples for it and take it apart carefully in diligence. Ask which half of the number is doing the work: retention held up by genuine expansion is durable, while retention held up by a single annual price increase is a lever that can only be pulled so many times. A business under 100% has to win new customers every year just to stand still.

In numbers: A SaaS business keeping $95k of every $100k cohort and expanding it to $110k has 110% net revenue retention.