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by skeeter2020 1884 days ago
I think their definition of Net Revenue Retention (at least my understanding) is wrong as it includes growth from net-new MRR. This confounds retention with growth and isn't really helpful to answer what you really want to know: where is the revenue coming from? Retention IMU should be Past MRR plus upgrades less downgrades less churn (divided by past MRR). It explicitly does not include new customers.

Some of the other metrics are not the priority ones we look at either; your core measures really depend on if you looking for profitability or growth.

1 comments

Public SaaS companies calculate dollar retention at least 15 different ways so there are many ways to do it. But I do agree with you.