Net Revenue Retention

Compute net revenue retention including expansion within the starting customer cohort.

Description

Net revenue retention follows the starting customer cohort and includes its expansion.

Net revenue retention follows the starting customer cohort and includes its expansion. New customers are outside the cohort, and expansion can lift the result above 100 percent.^[1]

Compute net revenue retention including expansion within the starting customer cohort.

When to use Net Revenue Retention

Use this for the following task: Compute net revenue retention including expansion within the starting customer cohort.

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 Net 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, expandedRevenue using the field table, then run the tool.
Read endingCohortRevenue, nrrPercent. 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
expandedRevenue	Expanded revenue	number	Required

Require positive starting revenue and nonnegative movements with churn plus contraction no greater than starting revenue. Apply the cohort bridge.^[2]

ending=starting−churn−contraction+expansion; NRR%=100 ending/starting

This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.

Output field	Meaning	Value type
endingCohortRevenue	Ending cohort revenue	number
nrrPercent	Nrr percent	number

json

{
  "input": {
    "startingRevenue": 100,
    "churnedRevenue": 10,
    "contractedRevenue": 5,
    "expandedRevenue": 25
  },
  "output": {
    "endingCohortRevenue": 110,
    "nrrPercent": 110
  }
}

Limitations and assumptions

Use the same cohort, currency and measurement period. No new-customer revenue or accounting adjustments are inferred.

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 Gross Revenue Retention for this operation: Compute gross revenue retention excluding expansions and new customers. For a complementary task, use MRR Movement Bridge for this operation: Reconcile starting MRR with new, expansion, contraction, and churn movements.

Further background: Billing analytics dashboard.

References

Billing analytics dashboard — Stripe
Net Revenue Retention — tool.io

Similar or alternative tools

Gross Revenue Retention
Compute gross revenue retention excluding expansions and new customers.
MRR Movement Bridge
Reconcile starting MRR with new, expansion, contraction, and churn movements.