net dollar retention

“The R squared is only .O six between net dollar retention and enterprise value to next 12 months revenue.”

“So it's not a valuation driver. I now think of it as a financing enabler, right? Okay. So a higher one isn't necessarily by itself going to drive a higher valuation, but I could tell you if you don't have a high enough one, you're not going to be able to raise…”

“Net dollar retention, which I think is actually a more effective way to get at what churn is trying to measure.”

“A good rate is around a 115%.”

“The average one had three hundred and thirty million in ARR, 49% revenue growth, and a 120% net dollar retention.”

“More than half of companies out there have very weak to negative net dollar retention metrics.”

“What that tells an investor is that some of your customers are doing exceptionally well with your software. They're upselling in a massive way. But others are not having product market fit at all, and they're falling off. This is really good to know. It's a pr…”

“And when the NDR was one 60% versus 120%, the company grew 4.2 times over a five year period.”

“Companies are hiring less today. And so the net dollar retention for within a customer base for a company that licenses software and their revenue is sort of directly influenced by the headcount growth or something like that of their customers, that is slowing…”

“When you reach that point NDR basically represents your growth rate. If you got a 130% NDR and 95% of your revenue is coming from existing customers, your revenue is going to be about 30%. Just the law of nature. Your new customer is going to add to that, but …”

“A hundred percent NDR is something that investors really care for. Doesn't mean that you necessarily have to be there at the Series A, but I think there needs to be some path of getting there because people are really afraid of investing in businesses that kee…”

“Top quartile used to be around a 130%. Now it's about a 120%.”

“If you're using a combination pricing model, in other words, seats plus usage, three X the growth in that dollar retention as somebody who's using any other form of pricing.”

“The reason we lean into that motion is because we observe that those customers who came in through the sales process had just very, very different retention mechanism qualities. They also have very, very different NDR qualities. They expanded it a lot further.”