The SaaS CFO

JUNE 13, 2021

Recurring revenue businesses have become the stars of the investment world. Investors love stable, recurring revenue streams. Valuations are tied to the health of our recurring revenue. But how do we measure the health of our recurring revenue? We use gross dollar retention (GDR) and net dollar retention (NDR).

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The SaaS CFO

NOVEMBER 8, 2022

Net dollar retention measures the amount of revenue that you keep and expand in your existing customer base. Net dollar retention (NDR) along with gross dollar retention (GDR) have become popular metrics in the valuation world. Retention is Pillar 2 of my 5 Pillar SaaS Metrics Framework.

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The SaaS CFO

JANUARY 24, 2023

Time to focus on customer retention and the health of our recurring revenue. It’s somewhat ambiguous when we try quantify our customer retention costs. We know that we […] The post How to Calculate Customer Retention Cost appeared first on The SaaS CFO. New customer growth may be slowing down.

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The SaaS CFO

OCTOBER 25, 2022

Gross dollar retention measures the amount of revenue that you keep from your existing customer base. Gross dollar retention (GDR) along with net dollar retention (NDR) have become popular metrics in the valuation world. The post How to Calculate Gross Dollar Retention appeared first on The SaaS CFO.

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The SaaS CFO

DECEMBER 20, 2022

The health of your recurring revenue in SaaS is paramount. Healthy revenue drives predictable cash flow and higher valuations. Typically, you measure Gross Dollar Retention and Net Dollar Retention to assess the stickiness of your revenue. However, there is another metric that compliments retention.

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The SaaS CFO

NOVEMBER 13, 2019

In the SaaS space, we talk a lot about the health of our recurring revenue. This comes in the form of churn and retention. Macro level valuations of your SaaS business are based on a multiple of recurring revenue. The post How to Calculate Your Renewal and Upsell Rate appeared first on The SaaS CFO.

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BlueLight

SEPTEMBER 10, 2021

There are plenty of blogs that explain what net retention analysis is and the formula to calculate it. You’ll see how a 1% delta in net retention could mean tens of millions in MRR for your startup. Startup: Alex’s Lemonade SaaS Stand ?? What happens to MRR at different net retention rates? Scenario #1.

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