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NRR

Also known as Net Dollar Retention · NDR

Net Revenue Retention, % of recurring revenue retained from existing customers over 12 months, including expansion, minus churn and contraction.

In depth

NRR above 120% is the mark of a category-defining SaaS business; 100–110% is healthy; sub-100% means the leaky bucket is losing water faster than sales can fill it. NRR is the single strongest predictor of long-term valuation multiples.

Related terms

GRR
Gross Revenue Retention, retention excluding any expansion revenue. Caps at 100%.
Churn
The rate at which customers or revenue leave the business in a period.
ARR
Annual Recurring Revenue, the run-rate of contracted subscription revenue at a point in time.
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