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Growth & SaaS metrics

Net Revenue Retention NRR

How much recurring revenue a cohort of existing customers generates a year later, after upgrades, downgrades, and churn.

Part of the Growth & SaaS Metrics course · Lesson 2 of 8
Formula
NRR = (Starting ARR + Expansion - Contraction - Churn) / Starting ARR x 100%

What it is

Net Revenue Retention measures the change in recurring revenue from a fixed group of customers over a period (usually 12 months), counting expansion (upgrades, cross-sells, more usage) minus contraction (downgrades) and churn (cancellations). It deliberately excludes revenue from brand-new customers won during the period. It is expressed as a percentage, where 100% means the existing base held flat.

Why it matters

NRR above 100% means existing customers spend more over time even after some leave, so the business can grow without adding a single new logo. It is one of the strongest signals of product stickiness and pricing power in SaaS. A figure below 100% means the existing base is shrinking and new sales must run just to stand still.

How it's calculated

Take the recurring revenue from a customer cohort at the start of the period, add expansion, subtract downgrades and churn, then divide by the starting amount; new-customer revenue is not included.

How Quintarthai uses it

Disclosed NRR (sometimes called Net Dollar Retention) appears in a company's filings and earnings materials, which you can review alongside Quinn's AI take on its company deep-analysis page.

Cross-border note. NRR is a self-defined non-GAAP metric in both Canada and the US, with no standard definition; check whether a company measures it over 12 months or a quarter, and whether it is gross of or net of FX before comparing a TSX issuer to a US one.

FAQ

Can NRR be above 100%?
Yes. NRR above 100% means expansion from existing customers more than offset downgrades and cancellations. Best-in-class SaaS companies often report 110% to 130%.
How is NRR different from gross revenue retention?
NRR includes expansion revenue, so it can exceed 100%. Gross revenue retention excludes expansion and caps at 100%, measuring only how much you kept.
Related terms
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