Net Revenue Retention
Definition
The percentage of recurring revenue retained from existing customers over a period, including expansions, contractions, and churn.
Explanation
NRR above 100% means existing customers are spending more over time — the business grows even without acquiring new customers. Above 120% is excellent and typical of best-in-class SaaS companies (Snowflake, Datadog, CrowdStrike). Below 100% means the company is losing revenue from existing customers faster than expanding it. NRR is considered the single most important SaaS metric because it measures product stickiness and expansion efficiency. Stoquity's AI engine heavily weights NRR in scoring subscription software companies.
Formula
NRR = (Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100%
See This in Action
Explore how net revenue retention applies to real portfolios on Stoquity.
Start Free →