Definition
Net Dollar Retention (NDR) is a metric used by SaaS companies to measure revenue growth from their existing customer base over a specific period. It accounts for upgrades, downgrades, and churn.
Why it matters (in Poovi’s context)
Figma’s NDR of 132% is a significant indicator of its ability to grow revenue from existing customers, demonstrating strong customer value and product stickiness.
Key properties or components
- Measures revenue from existing customers
- Includes expansion revenue
- Accounts for churn
- Expressed as a percentage
Contradictions or debates
None.