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Net revenue retention

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

Layer
Metric
Defined in
Metric definitions
Components
1

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 + Expansion − Contraction − Churn) ÷ Starting

Can exceed 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.

Components that render this

The concept is not documentation-only. These are the components that name it in their specification, grouped and stated exactly as the catalog states them.

Components that render the terms it depends on

Little in the catalog names this concept outright, but its definition is built out of others that are named. These render revenue.

Terms this one depends on

Also in Recurring revenue

Work with this concept

The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.

Defined in Metric definitions. This page is generated from that document, so the two cannot disagree.

Works in your QuickBooks Online or Xero file

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