Net Revenue Churn
Formula
(Contraction + Churned Revenue − Expansion − Resurrection) ÷ Beginning Revenue
Definition
Net Revenue Churn measures the net percentage of revenue lost from an existing customer base during a period after accounting for expansion and resurrection.
Revenue from new customers is excluded. Net Revenue Churn can be negative when expansion and resurrection exceed revenue lost through contraction and churn.
Interpretation
Lower Net Revenue Churn generally indicates stronger performance. A positive rate means revenue losses exceed expansion and resurrection, while a negative rate means the existing customer base is generating net revenue growth before any contribution from new customers.
Net Revenue Churn should be evaluated alongside Gross Revenue Churn. The difference between the two shows how much expansion and resurrection are offsetting underlying revenue losses.
In MetricFrame
MetricFrame calculates Net Revenue Churn from customer-level revenue movements, incorporating expansion, contraction, churn, and resurrection while excluding revenue from new customers.