Expansion revenue

Definition

Extra money from existing customers, through more seats, more usage or a higher tier.

Why It Matters

It is what makes net retention exceed a hundred percent, and it is the difference between a business that grows without selling and one that has to replace every departure before it grows at all. It also tells you where the product's pricing actually bites. Ask for revenue from existing accounts split into upgrades and usage, because a business whose expansion is all usage grows with its customers' fortunes instead of with its own product.