What is NRR (Net Revenue Retention)?

NRR above 100% means the existing customer base is growing on its own — expansions from upgrades outpace cancellations and downgrades. An NRR of 110% means the cohort from last year is now generating 10% more revenue than it did 12 months ago, with no new customer sales counted. This is the dynamic behind the 'land and expand' SaaS model.

NRR is closely watched in SaaS finance because it measures customer success and business health in a single number. But it can be distorted by a small number of very large expansions — one enterprise upsell can push the aggregate above 100% even if most of the customer base is flat or churning. Watching median NRR by cohort size alongside the aggregate gives a more honest picture.