Gross revenue retention

Gross revenue retention is a recurring-revenue metric, calculated as (Starting − Contraction − Churn) ÷ Starting.

Layer: Metric
Defined in: Metric definitions
Nearby: 15

Authority

This definition follows Non-GAAP financial measure — SEC Regulation G — it is not a GAAP measure, so a registrant publishing it has to reconcile it to the nearest GAAP figure.

Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.

Formula

(Starting − Contraction − Churn) ÷ Starting

Caps at 100%.

A metric without its definition is a number people argue about in meetings. Every metric component in this system requires one — see the rules.

For founders

The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.

Gross revenue retentionRecurring revenue kept from a group of customers a year later, after downgrades and cancellations but ignoring upgrades, as a percentage of what they paid then. It can't exceed 100%. It's a metric, not a GAAP figure.

Nearby in the catalog

No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.