Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.
Net dollar retention (NDR), also called net revenue retention (NRR), measures the percentage of your revenue that you’re able to maintain from existing customers, inclusive of expansion revenue. Software as a service (SaaS) companies often track and report NDR because it can offer insight into revenue growth and customer satisfaction.
You can calculate NDR by taking your monthly recurring revenue (MRR) at the start of the month, subtracting churn and downgrades, and adding expansion. Then, divide the result by the MRR. Multiply the result by 100 if you want the percentage. Additionally, you can use annual recurring revenue (ARR) instead of MRR to find your annual NDR.
Your NDR can help you understand your business’s ability to grow. Many successful SaaS companies have an NDR that’s over 100%. Meaning they can more than cover the losses from downgrades and churn with add-ons, upselling, and cross-selling, and the business could grow even if it doesn’t attract new customers.
Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.
We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at email@example.com.
Get the peace of mind that comes from partnering with our experienced finance team.