Net Retention Rate

“There's over a hundred SAS public companies and something like two of them have NRR less than a hundred percent. Like that's how it goes. And those companies have horrible financials and their values valuations are bad.”

“In fact, the median for a IPO SAS company, like at IPO, the median NRR is a 119%.”

“And I think when you look at consumer and prosumer, yes, for that individual user, you may only be on 87% revenue retention, but what then happens is you build a product on Lovable, you then share it with a bunch of your friends, a handful more people sign up …”

“And we asked people your net retention rate this year versus last year. So this essentially the chart looks at the X axis is the net retention rate. The Y axis is number of percentage of people that are in each of those buckets. And net retention rate was down…”

“I've seen a lot of startups for growth stage companies where their net retention rate is down 1015, or 20 points year over year.”

“Net retention rate is a mix. I said it's a bit of a scam because it's mixing a lot of things together. So vanity metric.”

“I think very commonly when people talk about KPIs for customer success teams, people quickly throw up GRR, NRR, like those are my numbers. I'm like, that's cool, but that's, you know, if you're driving by looking in the rear view mirror, you have the right set…”

“If it's scale, if you can't grow your new logos, 20% a year, you're in decay. Okay. 20% a year plus 120% NRR. I know it doesn't totally sum, but that's your 40% growth at scale.”

“Our NRR was like 215% last year”

“When we look at our business and complement this with other initiatives, what we see is the 41% like we talked about, 52% the done with you, the done for you at 74%, and if you couple just the coaching, completing coaching with the other initiatives that we've…”

“And then there are metrics to track efficiency, right? Things like burn multiple, gross margin, NRR, all of these things. They're all of them are just like not applicable at this stage. It's too early and you shouldn't be worrying about that stuff.”

“So like, you know, we're talking about our gross margin needs to be above 60%, hopefully above 70%. Our burn multiple is now below three, right? Like ideally we're in like the, ideally we're like close to one, right? Burn multiple, like in the one to three zon…”

“If you can get it to ten million, you have good NRR, and the founders don't quit, Like, even if you're growing 30%, build a spreadsheet. You will go from 10 to a hundred if you're patient enough.”

“Private equity firms will buy any SaaS company with high NRR that are break even north of twenty million.”

“As you scale, even though you do performance marketing, you do the Super Bowl, you do whatever you want, that increment is going to be insignificant compared to the subscription revenue you already have. So, let's say you want to grow 30%, 40%. How do you do i…”

“Almost all public companies that sell the SMBs, like exclude their smallest customers from NRR.”

“In the last, You know, 12 months since the economy changed is that we actually found that our SMB budget was more stable than our enterprise segment. So the SMBs NRR, yeah, was actually more stable.”

“You can brute force high NRR with longer term deals. You can brute force NRR if you threaten customers when they leave with an inability to get their data. You can brute force NRR by having out of bound price increases, 30 or 40% a year.”

“This is something I hadn't seen ever in my history of SAS, but I see it all over the place now is CSAT and NPS down, but NRR up. This is reaction to stress.”

“At the end of the day, the metric everyone's going to talk about is NRR, going to a Ron's point. Every public company reports it, but GRR is more important.”

“There may be an exception or two out there, but from my knowledge, for folks that sell to SMBs, I do not believe anyone got past a hundred that is single product, right? And HubSpot's the biggest example. HubSpot was stuck at 85% through 40 or fifty million, a…”

“We didn't really have a good NRR in the beginning. Cause it was like very small customers and we kept improving the product all the time, but we looked to Iran's point. We looked at the metric and we saw where the problems were and we added the sales team. We …”

“The thing is, SAS is not really that interesting without a hundred percent NRR from SMBs and like a 120% from the enterprise, because you can kind of sleepwalk. I mean, not literally, but it's what makes the business model work is that the revenue recurs, righ…”

“Today, After ARR and ARR growth, the most important metric that's looked at is what your NRR rates, your net retained revenue metric is.”

“I will submit that PLG product companies are going to start seeing 152 103 hundred percent NRR, because why? Because they're going to start on a lower price point as an entry, and they're going to expand up further beyond that.”

“So look, if you go meet with a VC and let's say your enterprise, ok, and your NRR is only a hundred percent in the enterprise, not good enough. It's got to be north of a 120 in the enterprise, right? Let's say your SMB and you're below 95%, not good enough for…”

“HubSpot is an iconic company for larger SMBs, right? Iconic, right? But it took them quite a while to get to a hundred percent NRR, ok? It took them quite a while.”

“Obviously revenue growth, NRR and burn rate, any B to B company can be reduced to, you know, top line growth, NRR and burn. If I know the three of those, I know the physics of your business.”

“It's between 202 150 persons after one year.”

“You get to 10 to a hundred, With almost no sales team, not quickly.”

“If you have a 120% NRR, that 120% NRR carried a ten million dollar business to two hundred and fifty million, even with market share loss, right?”

“It's key for the vast majority of not all, but the vast majority of SAS companies is you need a second product to drive up NRR.”

“Box is one of the actually old, old box is one of the most dramatic examples. Their NRR varies from 90 to one 30. Depending on how many modules and products you use.”

“We've seen 110% as our NRR. So mostly we've seen that, you know if there is around 10, 20% companies that are churning against that, we're able to upsell around 30%.”

“We move NRR, our 40 points in a year, which is pretty remarkable.”

“I believe at a board level discussion at a C-suite, we're going to see more and more discussion, particularly for those of you in marketing you're going to hear more about NRR than ever.”

“The public markets are okay if you have consumptive based revenue, as long as it looks like recurring revenue. If you have a 140% NRR, no one cares where it comes from, right? Whether it comes from Bitcoin, 20 year contracts, six second contracts.”