Net Revenue Retention

A metric that measures the percentage of revenue retained from existing customers over a specific period, accounting for both expansion revenue (upsells, cross-sells) and contraction revenue (downgrades, churn). Calculated as (Beginning Revenue + Expansion – Contraction) / Beginning Revenue 100, it indicates whether a company is growing within its current customer base or losing revenue. Net Revenue Retention above 100% signals strong product-market fit and is a critical indicator of subscription business health, especially for SaaS companies.