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What is Net Revenue Retention (NRR)?

Net Revenue Retention (NRR) measures how much revenue you have today compared to what you had one year ago. NRR is a metric that measures a company’s ability to retain customers and continue to generate revenue. NRR is typically calculated as follows.

NRR Formula

NRR = (Net Revenue from Retained Customers - Net Revenue from Churned Customers) / Total Net Revenue

The higher the NRR, the better a company’s ability to retain customers. In SaaS industry, if you are over 100% NRR, that means you are growing. 120% NRR is considered best in class.

Customer Lifetime ValueIdeal Customer Profile(ICP)