Net Revenue Retention (NRR) looks at the net revenue left over from your existing customers in a set time period.
Net Revenue Retention takes into account the total revenue minus any revenue churn (caused by departing customers, or customers who have downgraded) plus any revenue expansion from upgrades, cross-sells or upsells. Net revenue retention can be calculated at any time, but is usually looked at on an annual or monthly basis.
Net revenue retention is perhaps the most fundamental KPI in terms of determining customer success with your product. If you're a highly successful company with happy customers, your net revenue retention will most likely exceed 100%. If you're closer to 0%, it's time to start taking a serious look at where your customers are churning out and take evasive action.
Net Revenue Retention is a broad metric that functions as a snapshot of what your company might look like over time if no new customers were acquired.