Dollar-Based Net Expansion Rate
Dollar-based net expansion rate (also called net dollar retention or net revenue retention) measures how much revenue a fixed group of existing customers generates at the end of a period compared with the start, counting upsells and cross-sells against downgrades and churn. Above 100% means the customers you already have are growing faster than they are leaving.
Take the customers you had at the start of the period and only those customers. What they pay you now, versus what they paid you then, is the whole metric.
Dollar-based net expansion rate (also known as "net dollar retention rate" or "net revenue retention rate") is a key performance metric used to assess the revenue growth and retention of existing customers for a company that operates on a subscription or recurring revenue model. It provides insights into how effectively a company is retaining and expanding its customer base over a specific period.
The dollar-based net expansion rate measures the change in revenue generated from existing customers over a given period, taking into account the effects of expansion (upsells, cross-sells) and contraction (downgrades or churn) of customer accounts.
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