Net Revenue Retention (NRR)

Net Revenue Retention measures the percentage of revenue retained from an existing customer base over a period after accounting for expansion, contraction, and customer churn. Revenue from new customers is excluded.

Because NRR includes expansion from existing customers, it can exceed 100%.

NRR above 100% indicates that expansion from existing customers more than offsets revenue lost through contraction and churn, causing the existing revenue base to grow without any contribution from new customers. NRR below 100% indicates that the existing revenue base is contracting.

NRR should be evaluated alongside Gross Revenue Retention (GRR). GRR isolates revenue loss, while NRR also incorporates expansion. A meaningful gap between NRR and GRR indicates that expansion is offsetting some or all of the underlying churn and contraction.

MetricFrame calculates NRR over a trailing one-year period by comparing revenue from customers active at the beginning of the period with revenue from those same customers at the end of the period. Revenue from customers acquired during the period is excluded.