Analytics
Net Dollar Retention
Net dollar retention (NDR) measures the percentage of recurring revenue retained from existing customers after accounting for upgrades, downgrades, and churn. An NDR above 100% means existing customers are generating more revenue over time even without new acquisitions.
Examples
A SaaS company starts the year with $1M in ARR from a cohort that ends the year at $1.15M after expansions and churns, giving a 115% NDR.
Best Practices
Segment NDR by customer size and cohort, aim for above 110% for healthy SaaS businesses, and investigate any quarter-over-quarter decline immediately.