Re:Understanding SaaS Metrics
by skeeter2020 on Sunday April 25, 2021 @11:16PM
(#26938906)
I think their definition of Net Revenue Retention (at least my understanding) is wrong as it includes growth from net-new MRR. This confounds retention with growth and isn't really helpful to answer what you really want to know: where is the revenue coming from? Retention IMU should be Past MRR plus upgrades less downgrades less churn (divided by past MRR). It explicitly does not include new customers.
Some of the other metrics are not the priority ones we look at either; your core measures really depend on if you looking for profitability or growth.
Some of the other metrics are not the priority ones we look at either; your core measures really depend on if you looking for profitability or growth.