Net Revenue Retention (NRR)

NRR is calculated by taking the ARR from a cohort of customers at the start of a period, adding expansion revenue generated from that same cohort during the period, subtracting churn and contraction from that cohort, and expressing the result as a percentage of the starting ARR. An NRR of 120% means that the same set of customers that generated $1M at the start of the year now generate $1.2M at the end — a 20% net growth from the existing base alone, before any new logos are added. NRR is arguably the most important operational metric for a subscription business because it determines how much of your ARR growth comes from compound expansion of the existing base versus the treadmill of constant new customer acquisition. Companies with NRR above 120% are compounding revenue from retention and expansion faster than typical SaaS growth targets — meaning even modest new logo acquisition produces significant ARR growth. Companies with NRR below 90% are experiencing net revenue contraction from the existing base and must run a massive new logo acquisition engine just to stay flat. For sales teams, NRR has direct implications for pipeline strategy. High NRR means each new customer acquired creates a long-term, expanding revenue stream — justifying higher CAC and more intensive outbound investment per new logo. Low NRR means that the sales team is effectively filling a leaky bucket: every new customer acquired partially offsets the revenue leaving through the bottom. Outvid is used by expansion-focused revenue teams to run proactive video outreach to existing accounts for upsell and cross-sell opportunities — treating internal account development with the same systematized, personalized approach as new logo prospecting.