Net revenue retention (NRR)
Revenue this year from a group of existing customers divided by their revenue a year earlier, including upsell, downsell and churn.
NRR shows how much revenue a company keeps and grows from customers it already has. Above 100 percent means expansion within existing accounts more than offsets revenue lost to cancellations and downgrades. Definitions vary: some companies use trailing-twelve-month cohorts, others use a fixed set of customers.
Traders care because NRR shows whether the product is expanding inside accounts. A high NRR means growth needs less sales spending for each new dollar of revenue. A falling NRR can be an early sign of pricing pressure or customer churn, before it shows up in total revenue.
Worked example (illustrative numbers, not real data): a customer group paid 100 million dollars a year ago and pays 112 million now. NRR is 112 percent, even if the company added no new customers.