{
  "rogueId": "customers.net_revenue_retention",
  "slug": "net_revenue_retention",
  "domain": "customers",
  "defaultLabel": "Net Revenue Retention (NRR)",
  "description": "Recurring revenue retained from the cohort of customers present at the start of the period, including expansion (upsell, cross-sell, price increases) and net of churn and contraction — but excluding revenue from net-new logos acquired in-period. Per the SaaS Metrics Standards Board (SMSB) NRR standard. NRR above 100% means the cohort grew faster than it lost — a hallmark of strong product-led expansion. The board reads NRR alongside GRR (`customers.gross_revenue_retention`) to separate the \"keep + expand\" signal from the \"just keep\" signal. Common pitfall: mixing GAAP revenue and ARR in numerator vs. denominator, or letting net-new logo revenue leak in — both inflate the number; SMSB is explicit that the cohort is closed at period start.",
  "fieldType": "percentage",
  "unit": "%",
  "maturity": "general",
  "suggestedForStages": [
    "seriesA",
    "seriesB",
    "seriesC",
    "public"
  ],
  "defaultOwningFunctions": [
    "Finance",
    "Sales"
  ],
  "stageRelevance": {
    "seriesA": "core",
    "seriesB": "core",
    "seriesC": "core",
    "public": "core"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "SaaS Metrics Standards Board",
    "sourceUrl": "https://www.saasmetricsboard.com/net-revenue-retention",
    "sectionRef": "NRR",
    "publicationDate": "2023-01-01",
    "attributionNotice": "Metric definitions reference standards published by the SaaS Metrics Standards Board (saasmetricsboard.com). imboard is not affiliated with, endorsed by, or a member of SMSB."
  },
  "benchmark": {
    "p25": 96,
    "median": 101,
    "p75": 109,
    "unit": "%",
    "sourceName": "KBCM/Sapphire SaaS Survey 2024 (15th Annual)",
    "sourceYear": "2024",
    "higherIsBetter": true
  },
  "formula": "NRR = (Starting ARR + Expansion − Contraction − Churn) ÷ Starting ARR, measured on the cohort active at period start. New-logo ARR acquired in-period is excluded from both numerator and denominator. Per SMSB NRR standard.",
  "whyItMatters": "The single best read on whether existing customers love the product enough to pay more over time. Strong NRR (>100%) compounds — it lets growth come from inside the install base, lowering reliance on new-logo acquisition and improving capital efficiency.",
  "interpretationGuidance": "Per KBCM/Sapphire Private SaaS Company Survey 2024 (§ \"Net Dollar Retention\"), private SaaS NRR medians have historically clustered around the low-to-mid 100s, with top-quartile in the 110s+ — but cuts vary year-over-year and by ACV segment, so pull the current edition rather than citing a stale point estimate. Top-quartile public SaaS (per typical Bessemer State of the Cloud commentary) cite NRR ≥ ~120% as the benchmark for \"best-in-class\" expansion — treat that thresholds as industry folk-wisdom unless cited to a named edition. Always pair NRR with GRR: a wide gap means expansion is propping up underlying churn.",
  "relatedKpiIds": [
    "customers.gross_revenue_retention",
    "customers.logo_retention_rate",
    "customers.logo_churn_rate",
    "customers.expansion_opportunities",
    "sales.arr"
  ]
}