Net Revenue Retention(NRR)

NRR is the most important metric to see if your business is growing healthily. You calculate it like this: start with revenue from a group of customers a year ago, see how much those customers generate now (including upsell, minus churn), and divide that by the start revenue. If your NRR is 120%, it means: your existing customers generate 20% more than a year ago, despite some having stopped. An NRR above 100% is the goal of every successful SaaS company. At 120% NRR you can keep growing without new customers. The best SaaS companies like Snowflake and Datadog have an NRR of 130-170%. This comes from strong upsell and cross-sell. With an NRR below 100% you're losing revenue from your existing customers faster than you're selling to them. Then you have a problem: your product isn't sticky enough or you're not doing enough account management. A good NRR doesn't come automatically: you need a strong product that customers want to buy more of, a good customer success team, and a clear upsell strategy.