TMT (Tech, Media & Telecom)
A SaaS cohort starts the year at $100 of ARR. During the year it loses $10 to churn and downgrades and gains $15 from upsells to those same customers. What are gross and net revenue retention?
Model answer
Gross revenue retention (GRR) measures only what you KEEP, ignoring expansion: ($100 - $10) / $100 = 90%. Net revenue retention (NRR) nets expansion against losses: ($100 - $10 + $15) / $100 = 105%.…
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