NRR

Net Revenue Retention

aka Dollar Renewal Rate, Dollar Revenue Retention

NRR measures the percentage of revenue retained from all customers (regardless of time as a customer) over a rolling moving 12-month window. In a SaaS business, a Net Revenue Retention Rate >100% is a growth indicator. Across all SaaS companies, the median Net Retention Rate is ~100%. Higher Annual Contract Value (ACV) products have a higher Net Retention Rates. For SaaS companies selling into small and medium businesses (SMBs), a good Net Retention Rate is 90%. For Enterprise SaaS, 125% is considered a good Net Retention Rate. [1] [2] [3] [4]

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[1] Net Dollar Retention vs. Net Revenue Retention - VC Adventure. Retrieved May 21, 2021, from https://sethlevine.com/archives/2021/03/net-dollar-retention-vs-net-revenue-retention.html

[3] Net Revenue Retention Rate. Retrieved May 21, 2021, from https://www.klipfolio.com/metrics/saas/net-revenue-retention-rate

[4] What is Net Revenue Retention in SaaS and How to Calculate it Correctly. Retrieved May 21, 2021, from https://www.smartkarrot.com/resources/blog/net-revenue-retention/

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