Video · 15 min

Net Revenue Retention for SaaS: Key Metric or Disguise for Disappointing Performance?

Brian DeChesare · Mergers & Inquisitions / Breaking Into Wall Street Free Beginner

Net Revenue Retention for SaaS: Key Metric or Disguise for Disappointing Performance?

This is the investor side of the desk explaining the calculation and then explaining what they are really testing for when they ask. It also shows how NRR can flatter a business, which is worth knowing before you quote yours.

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The question it answers

  1. What is net revenue retention and why does every investor keep asking me for it?

Read with it

  1. The cleanest definition of expansion MRR with the formula and the benchmark that matters: top companies get up to 40 percent of... Chargebee Article · 7 min read Expansion MRR: Definition, Formula, and Impact on SaaS Growth Chargebee
  2. The benchmark study everyone quotes: good and great net revenue retention by business type, built from 20 growth experts plus... Lenny's Newsletter Newsletter · 15 min read What is good retention? Lenny Rachitsky
  3. The good, better, best NRR bands (100, 110, 120 plus) that boards actually benchmark against, sitting alongside the efficiency... Bessemer Venture Partners Report · report State of the Cloud 2023 Kent Bennett, Talia Goldberg, Mike Droesch and others
  4. The formula written out term by term, with the three performance bands. The right first read if you have been nodding along in... Stripe Article · 9 min read Net revenue retention (NRR): What is NRR and why does it matter for SaaS businesses? Stripe
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