Gross Revenue Retention
Compute gross revenue retention excluding expansions and new customers.
Description
Gross revenue retention measures starting-cohort revenue preserved after churn and contraction.
Gross revenue retention measures starting-cohort revenue preserved after churn and contraction. It excludes expansion and revenue from new customers.1
Compute gross revenue retention excluding expansions and new customers.
When to use Gross Revenue Retention
Use this for the following task: Compute gross revenue retention excluding expansions and new customers.
Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
How to use Gross Revenue Retention and understand its results
- Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
- Enter startingRevenue, churnedRevenue, contractedRevenue using the field table, then run the tool.
- Read retainedRevenue, grrPercent. Interpret flags, units, ordering and placeholder values using the rules below.
- Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.
| Input field | Meaning | Value type and bounds | Requirement |
|---|---|---|---|
| startingRevenue | Starting revenue | number | Required |
| churnedRevenue | Churned revenue | number | Required |
| contractedRevenue | Contracted revenue | number | Required |
Require positive starting revenue and nonnegative losses whose sum does not exceed it. Return retained revenue and percent.2
retained=starting−churn−contraction; GRR%=100 retained/starting This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.
| Output field | Meaning | Value type |
|---|---|---|
| retainedRevenue | Retained revenue | number |
| grrPercent | Grr percent | number |
{
"input": {
"startingRevenue": 100,
"churnedRevenue": 10,
"contractedRevenue": 5
},
"output": {
"retainedRevenue": 85,
"grrPercent": 85
}
}Limitations and assumptions
The stated model caps GRR at 100 percent. Cohort, time period and movement classification must already agree.
These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.
Alternative or Complementary methods
Choose Net Revenue Retention for this operation: Compute net revenue retention including expansion within the starting customer cohort. For a complementary task, use Logo Revenue Churn for this operation: Compare customer-logo churn with revenue churn from the same starting cohort.
Further background: Billing analytics dashboard.
References
-
Billing analytics dashboard — Stripe
-
Gross Revenue Retention — tool.io
Similar or alternative tools
- Net Revenue Retention
Compute net revenue retention including expansion within the starting customer cohort.
- Logo Revenue Churn
Compare customer-logo churn with revenue churn from the same starting cohort.