NRR
Net Revenue Retention
In one line
Net revenue retention (NRR) measures how much of last year's customer cohort revenue you've kept and grown a year later — the cleanest single read on SaaS business health.
Going deeper
NRR takes the revenue your existing customer cohort produced 12 months ago and compares it to what the same cohort produces today. New logos are excluded, so the metric strips away acquisition noise and shows the real health of the installed base.
100% is break-even; healthy SaaS businesses typically land somewhere between 110% and 130%. Anything above 100% means revenue grows even with zero new sales — sometimes called 'negative churn' — and it has become the headline number investors look at from Series B onwards.
In practice NRR is one of the very few quantitative reads on whether customer success is working. Strong upsell and cross-sell with low churn pulls the number up; if it stays under 90%, the bucket is leaking faster than new acquisition can refill it.
Related terms
MRR
Monthly recurring revenue (MRR) is the sum of subscription revenue you can reliably expect each month — the headline growth signal for any subscription or SaaS business.
MarketingARR
Annual recurring revenue (ARR) is recurring revenue normalised to a yearly view — the standard yardstick investors use to size a SaaS business.
MarketingChurn Rate
Churn rate is the percentage of customers who leave or cancel during a given period — effectively the mirror image of retention.
MarketingRetention
Retention is the share of users who continue to use or purchase from your product over time after their first touch — a primary signal of long-term product health.
MarketingCustomer Success
Customer success is the discipline of proactively helping customers achieve their business goals with your product — increasingly treated as a core SaaS growth engine, not a support function.
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