NRR & GRR

NRR measures revenue retained from an existing customer cohort including expansion and contraction; GRR measures the same but excludes any expansion, capping it at 100%.

NRR above 100% means expansion from existing customers more than offset churn and downgrades — a strong, widely-watched signal in SaaS, since it means the existing customer base grows in revenue even before counting a single new customer. GRR, by definition, can never exceed 100% (it only counts churn and downgrades, never expansion), making it a purer measure of "how good are we at simply not losing revenue," separate from how good expansion sales are.

Comparing NRR across companies without also checking GRR can be misleading — a company could show strong NRR while actually having weak retention (high GRR loss) that's being masked by aggressive expansion sales to the shrinking base of customers who remain.