47 net revenue retention (NRR) statistics that define SaaS growth

Comprehensive benchmark data from 2021 through 2026 revealing how NRR relates to valuation premiums, expansion revenue, and sustainable growth for usage-based businesses

Net revenue retention has become one of the most important metrics for SaaS valuation and growth efficiency. With median private B2B SaaS NRR at 101% in 2024 and companies above 120% NRR commanding a 63% valuation premium to the SEG Index median in SEG's 2Q24 snapshot, the ability to retain and expand existing customer revenue separates market leaders from the rest. For companies operating usage-based billing models, NRR represents more than a metric. It reflects how well pricing architecture captures value as customers grow. Orb provides a unified foundation for metering raw usage events, applying flexible pricing, generating invoices, managing spend visibility, and evolving pricing over time.

Key takeaways

• Valuation impact is significant: Companies with NRR above 120% traded at 9.3x EV/TTM revenue versus 3.1x for those below 100% in SEG's 2Q24 snapshot.
• Usage-based pricing benchmarks vary by dataset: m3ter reports 115-130% NRR for consumption-based models compared with 95-105% for flat-rate subscriptions. In contrast, High Alpha's 2025 benchmark data reported 105% NRR for hybrid pricing, 102% for subscription pricing, and 99% for consumption pricing, so the relationship is sample-dependent rather than a universal industry rule.
• Expansion revenue contribution increased: Expansion ARR rose from a 25% median in 2022 to 40% of total new ARR in 2024.
• Enterprise segments outperform in one 2026 study: Optifai reports 118% median NRR for enterprise SaaS companies and 97% for SMB-focused companies. These figures are directional rather than universal benchmarks.
• Growth correlation is strong: In ChartMogul's H1 2024 dataset, the median company with NRR of at least 100% grew at 48% year-over-year, more than twice as fast as those below 100%.
• AI-native companies face distinct retention dynamics: ChartMogul's 2025 dataset shows 48% median NRR for AI-native companies, compared with 82% median NRR for B2B SaaS in the same dataset.

Understanding net revenue retention: the core metric for SaaS growth

Net revenue retention measures how much recurring revenue you retain from existing customers over a defined period, accounting for expansion, contraction, and churn. Unlike metrics focused only on acquisition, NRR reveals the health of existing customer revenue and the sustainability of the installed base.

1. Median private B2B SaaS NRR reached 101% in 2024

Private SaaS companies achieved a median NRR of 101% in 2024, down from approximately 105% in 2021. The benchmark establishes the decline, but it does not by itself establish a single cause for that change.

2. Optifai cites a 106% median NRR benchmark for venture-backed SaaS

Optifai cites a 106% median NRR for venture-backed SaaS, attributing the figure to ChartMogul's 2024 benchmark with N=2,100.

3. 72% of SEG Index companies reporting NRR exceeded 100% in 2Q24

In SEG's 2Q24 snapshot, among Index companies that reported NRR, 72% had NRR above 100%. This threshold represents net-positive revenue growth from existing customers before adding revenue from new logos.

4. NRR is the most commonly reported retention metric

Among public software companies in the SEG Index, 67% report their NRR figures, making it the most commonly shared retention metric in that dataset.

5. Top-quartile NRR thresholds vary by customer segment

Across a study of 939 B2B SaaS companies, Optifai's detailed table reports top-quartile NRR above 130% for enterprise, above 120% for mid-market, and above 105% for SMB companies.

Why net revenue retention matters: driving sustainable SaaS benchmarks

NRR is widely used to assess existing-customer revenue health, retention, and expansion. Higher NRR reflects stronger retained and expanded revenue within the measured customer cohort, while lower NRR reflects greater pressure from churn, contraction, or limited expansion.

6. Companies above 120% NRR traded at a 63% premium to the SEG Index median in 2Q24

In SEG's 2Q24 snapshot, public software companies with NRR exceeding 120% traded at a 63% premium to the SEG Index median of 5.7x. In that dataset, higher NRR was strongly associated with higher valuation multiples.

7. Companies above 120% NRR traded at 9.3x EV/TTM revenue in SEG's 2Q24 snapshot

Companies above 120% NRR traded at roughly 9.3x EV/TTM revenue versus 3.1x for those below 100% in SEG's 2Q24 dataset. The higher-NRR cohort's 9.3x median multiple was 3 times the 3.1x median for the below-100% cohort in that snapshot.

8. 56% of high-NRR companies traded in the upper quartile in SEG's 2Q24 snapshot

In SEG's 2Q24 snapshot, 56% of companies with over 120% net retention traded in the upper quartile of the SEG Index, showing a strong association between retention strength and valuation performance in that dataset.

9. More than 80% of companies above 120% NRR traded above the SEG Index median in 2Q24

In SEG's 2Q24 snapshot, among companies with more than 120% NRR, more than 80% traded above the broader SEG Index median. Higher retention was strongly associated with higher valuation positioning in that dataset.

10. In H1 2024, the median company with 100%+ NRR grew more than twice as fast

In H1 2024, the median SaaS company with NRR of at least 100% grew at 48% year-over-year, more than twice the rate of companies with NRR below 100%. This is an observed association in ChartMogul's H1 2024 dataset rather than proof that NRR alone caused the growth difference.

11. Moving from 90-100% to 100-110% NRR adds 5 percentage points to growth

SaaS Capital reports that moving from the 90-100% NRR band into the 100-110% band is associated with about 5 percentage points higher growth. The research shows an association between higher NRR and faster growth rather than establishing NRR as the sole cause.

12. High NRR combined with low CAC payback is associated with 71% median growth

Companies achieving both high NRR and low CAC payback reported 71% median growth and a Rule of 40 score of 47.

Net revenue retention vs. gross revenue retention: key distinctions and formulas

Understanding the difference between NRR and GRR helps companies diagnose whether revenue pressure comes primarily from churn and contraction or from insufficient expansion.

NRR formula

NRR = (Starting MRR + Expansion MRR - Contraction MRR - Churned MRR) / Starting MRR × 100

NRR captures the full picture of existing-customer revenue dynamics, including upsells, cross-sells, downgrades, and cancellations.

GRR formula

GRR = (Starting MRR - Contraction MRR - Churned MRR) / Starting MRR × 100

GRR excludes expansion revenue, isolating your ability to retain existing contracted revenue. GRR cannot exceed 100%.

13. Median GRR fell to 88% in 2024

Private B2B SaaS companies reported median GRR of about 88% in 2024, down from 90% in 2022. Benchmarkit notes that participant selection bias could contribute to the decline, so the result should be interpreted as a benchmark from its sample rather than definitive proof of industry-wide deterioration.

14. KeyBanc survey showed GRR at 86% in 2023

KeyBanc Capital Markets' private SaaS survey reported gross retention declining to around 86% in 2023.

When to prioritize each metric

• Focus on GRR when churn or contraction is materially reducing the existing revenue base.
• Focus on NRR when retention is solid but expansion from existing accounts is limited.
• Track both to distinguish a GRR problem from an expansion opportunity.

NRR benchmarks by customer segment and ACV

In Optifai's 2026 study, the reported 21-point spread between enterprise and SMB median NRR highlights materially different retention patterns across customer segments. These figures are most useful as directional benchmarks tied to the underlying sample and ACV definitions.

15. Enterprise SaaS maintains 118% median NRR in Optifai's 2026 study

Companies selling to enterprise customers with ACV over $100K achieve a median NRR of 118% in Optifai's 2026 study. Optifai lists seat expansion and module upsells as key drivers in the enterprise segment.

16. Mid-market companies achieve 108% median NRR in Optifai's 2026 study

SaaS companies targeting mid-market customers with $25K-$100K ACV maintain approximately 108% median NRR in Optifai's 2026 study, sitting between the enterprise and SMB figures in that dataset.

17. SMB-focused companies post 97% median NRR in Optifai's 2026 study

Companies serving SMB customers with ACV under $25K report 97% median NRR in Optifai's 2026 study, below the 100% threshold that signals net expansion from the existing customer base.

18. $25K-$50K ACV companies achieve 102% median NRR

For companies with ACV between $25,000 and $50,000, median NRR is 102% with the top quartile reaching 111%.

19. A secondary source reports a 12-point NRR increase from $1M to $20M ARR

Digital Applied reports, citing High Alpha, that companies scaling from $1M to $20M ARR lifted NRR by about 12 percentage points along the way. This exact 12-point figure is supported here by a secondary source rather than a directly cited High Alpha primary source, so it is best read as secondary-source evidence.

The rise of expansion revenue

Expansion ARR has become an increasingly important growth engine for mature SaaS companies, shifting more of the growth mix toward development of the existing customer base.

20. Expansion ARR rose from 25% to 40% of total new ARR

Between 2022 and 2024, expansion ARR increased from a 25% median to 40% of total new ARR. The benchmark shows that expansion became a materially larger component of new ARR over that period.

21. In 2024, companies with $50M-$100M ARR saw expansion contribute 58% of total new ARR

In Benchmarkit's 2024 data, at the $50M-$100M ARR band, expansion accounted for a median 58% of total new ARR. In that dataset, expansion represented a larger share of total new ARR at higher ARR bands.

22. In 2024, companies above $100M ARR saw expansion contribute 67% of total new ARR

In Benchmarkit's 2024 data, companies exceeding $100M ARR saw expansion contribute a median 67% of total new ARR. The greater-than-$100M cohort contained only six companies, so the figure is most useful as a sample-specific benchmark.

23. Companies with 100%+ NRR get over half their revenue from expansion

In ChartMogul's H1 2024 analysis, companies with at least 100% NRR depend on expansion for growth, with expansion accounting for over half of their revenue in the report's MRR movement analysis.

24. Private SaaS benchmark samples report 24-26% median growth

SaaS Capital reports 24% median growth for its survey sample of companies with more than $1M ARR, while Benchmarkit reports 26% in its 2025 benchmark dataset. These figures describe their respective samples rather than every private SaaS company.

25. Highest-NRR companies report median growth 83% higher than the population median

Companies achieving the highest NRR levels reported median growth 83% higher than the population median in SaaS Capital's 2025 research.

Top-performing public software companies by NRR in SEG's 2Q24 snapshot

The leaders in SEG's 2Q24 net retention snapshot illustrate the association between high NRR, account expansion, and valuation performance in that dataset.

26. Snowflake led the 2Q24 SEG snapshot with 135% NRR

Snowflake reported 135% NRR in SEG's 2Q24 dataset with an EV/TTM revenue multiple of 15.6x.

27. Bill.com achieved 131% NRR in 2Q24

Bill.com reported 131% NRR in SEG's 2Q24 dataset.

28. GitLab maintained 129% NRR in 2Q24

GitLab achieved 129% NRR with a 12.0x EV/TTM revenue multiple in SEG's 2Q24 dataset.

29. Braze reported 128% NRR in 2Q24

Braze maintained 128% NRR in SEG's 2Q24 dataset.

30. Confluent and Adobe each achieved 125% NRR in 2Q24

Both Confluent and Adobe reported 125% NRR in SEG's 2Q24 dataset. SEG also discusses Adobe's cross-sell opportunities across its suite of creative and marketing tools.

NRR by product category in SEG's 2Q24 snapshot

Different software categories showed distinct NRR patterns in SEG's 2Q24 dataset.

31. DevOps and IT management led at 119% category NRR in 2Q24

The DevOps and IT management category achieved the highest average NRR at 119% in SEG's 2Q24 snapshot.

32. Security software maintained 113% average NRR in 2Q24

Security software companies maintained an average NRR of 113% in SEG's 2Q24 snapshot.

33. Financial applications achieved 110% average NRR in 2Q24

The financial applications category posted an average NRR of 110% in SEG's 2Q24 snapshot.

34. Analytics and data management tools showed 108% average NRR in 2Q24

Analytics and data management companies maintained 108% average NRR in SEG's 2Q24 snapshot.

35. Sales and marketing software achieved 107% average NRR in 2Q24

Sales and marketing software companies reported 107% average NRR in SEG's 2Q24 snapshot.

The role of usage-based billing in net retention

Usage-based and hybrid pricing can align revenue more closely with customer consumption and, when the usage metric tracks value, with customer value creation. Benchmark outcomes still vary materially across datasets and methodologies, which makes the underlying pricing architecture and operational execution especially important.

36. m3ter reports 115-130% NRR for consumption-based models versus 95-105% for flat subscriptions

m3ter reports consumption-based models at 115-130% NRR versus 95-105% for flat-rate subscriptions. This is a vendor-reported cohort comparison rather than a universal industry result. A separate High Alpha 2025 benchmark dataset reported 105% NRR for hybrid pricing, 102% for subscription pricing, 100% for outcome-based pricing, and 99% for consumption pricing, underscoring that the relationship is sample-dependent.

37. m3ter's comparison puts consumption-based models at 115-130% NRR versus 95-105% for flat subscriptions

The available evidence is cross-sectional rather than a verified before-and-after transition study. m3ter reports consumption-based models at 115-130% NRR versus 95-105% for flat subscriptions. The comparison describes pricing-model cohorts and does not establish a specific causal uplift from switching models within a defined timeframe.

38. m3ter reports 115-130% NRR for consumption-based models

In its benchmark analysis, m3ter reports consumption-based pricing at 115-130% NRR. The range is best understood as m3ter's reported benchmark rather than a universal result across all usage-based companies.

For companies implementing usage-based models, Orb's billing engine handles the path from raw usage events through invoicing. Orb's price modeling supports flexible pricing structures. Orb’s dimensional price groups support pricing across multiple usage dimensions, such as region, instance type, and environment, using a single pricing configuration for dimension combinations.

AI-native SaaS retention challenges

AI-native companies show retention dynamics that differ materially from traditional SaaS benchmarks. ChartMogul's 2025 analysis covered about 200 AI-native companies, included both B2B and B2C businesses, and required at least $250K ARR for the annualized retention analysis.

39. AI-native companies had 48% median NRR in ChartMogul's 2025 dataset

AI-native companies had 48% median NRR and about 40% median GRR in ChartMogul's 2025 dataset, compared with 82% median NRR for B2B SaaS in the same dataset.

40. AI-native products above $250/month had about 85% NRR

AI-native products selling for more than $250 per month had about 85% NRR in ChartMogul's dataset. ChartMogul describes this as essentially the same NRR level as B2B SaaS in its comparison.

41. AI-native products at $50-$249/month had 61% NRR

AI-native products selling for $50-$249 per month had 61% NRR, showing materially different retention by pricing tier in ChartMogul's dataset.

42. AI-native products below $50/month had 32% NRR

AI-native products selling for less than $50 per month had 32% NRR, the lowest NRR tier in ChartMogul's dataset.

Tackling churn: strategies to protect your revenue base

Reducing churn strengthens the foundation for NRR because heavier churn raises the amount of expansion required to maintain or grow existing-customer revenue.

43. Companies with NRR below 60% have a 7% median churn rate

In ChartMogul's H1 2024 analysis, companies with NRR below 60% experience a median 7% churn rate, double the rate of those with NRR at or above 100%.

44. Only 6% of companies with 12,000+ subscribers reach 100%+ NRR

In ChartMogul's H1 2024 analysis, among companies with a 12,000+ subscriber base, only 6% reach 100% NRR or higher. In that dataset, reaching 100% NRR was less common among companies with larger subscriber counts.

45. Achieving 100%+ NRR became more difficult across all ARR ranges in 2024

Even top-quartile companies with $15M-$30M+ ARR did not reach the 100% NRR milestone in 2024. ChartMogul places the result in the context of slower new business and changing growth dynamics rather than a single causal explanation.

Effective dunning management automates payment retries and dunning workflows to help recover failed payments, addressing involuntary churn that can otherwise erode the recurring revenue base. Orb's finance and billing capabilities keep these workflows connected to the same billing system used for usage metering and invoicing.

CAC efficiency and the expansion advantage

In Benchmarkit's 2025 dataset, the median Expansion CAC Ratio was $1.00 versus a $2.00 median New CAC Ratio, so the measured Expansion CAC Ratio was half the New CAC Ratio in that sample.

46. New CAC ratio increased 14% in 2024 to $2.00

The median cost to acquire $1.00 of New Customer ARR increased by 14% in 2024 to $2.00 of Sales and Marketing expense. In the same dataset, the median Expansion CAC Ratio was $1.00, half the $2.00 median New CAC Ratio.

47. Blended CAC ratio decreased by $0.19 in 2024

The blended CAC ratio, which combines new and expansion ARR, decreased by $0.19 in 2024. Benchmarkit's page reports different percentage changes in separate sections, so the absolute $0.19 decrease is the clearest publishable figure from the page.

How Orb supports the levers behind NRR

For companies operating usage-based or hybrid pricing models, Orb provides an integrated billing and revenue design foundation across usage metering, pricing, invoicing, spend visibility, corrections, and pricing evolution. This architecture gives product, engineering, and finance teams a shared system for operating the billing workflows that support retention and expansion.

Raw usage events support accurate billing

Orb's standard metering architecture retains granular raw usage events, giving teams an auditable data foundation for usage-based billing. For very high-volume workloads, Orb also offers Hosted Rollups, which roll raw data into time-based aggregates. Partial rollups can be emitted more frequently to support real-time usage alerting before the full aggregation window closes. Orb's standard architecture supports backfills and recalculation of affected billing, while its cloud infrastructure guidance documents historical invoice recalculation. Orb also supports structured invoice-correction workflows for issued invoices. Orb says this event-level traceability supports finance reconciliation and compliance requirements. Customer-facing transparency is addressed separately through spend controls and billing visibility.

SQL-based metrics support complex expansion models

Defining billing metrics with SQL allows sophisticated usage aggregation while keeping pricing logic configurable in the billing platform. Orb's cloud infrastructure billing guide documents Custom SQL metrics for billable usage, including averages, maximums, and minimums. Orb's price modeling supports flexible pricing structures for modern software products. Orb’s dimensional price groups support pricing across multiple usage dimensions, such as region, instance type, and environment, using a single pricing configuration for dimension combinations.

Real-time visibility supports transparent customer billing

Orb's spend controls provide real-time visibility, threshold alerts, and automated workflows around customer spend and credit consumption. This transparency helps customers understand current spend and gives teams stronger primitives for managing usage-based customer experiences.

Vercel decreased the time it takes to build and launch billing for new products by 80%, while Stytch reported a 75% reduction in time spent processing bills and invoicing. These documented customer outcomes show how Orb can reduce billing operations work and return capacity to product, engineering, and finance teams for pricing and growth initiatives.

Strategies to improve net revenue retention

Based on the cited benchmark data and source playbooks, several levers are associated with retention and expansion outcomes.

Pricing model optimization

• m3ter reports consumption-based models at 115-130% NRR versus 95-105% for flat subscriptions. This compares pricing-model cohorts and does not establish that switching models produces a fixed causal uplift within a defined timeframe.
• ChartMogul's analysis of full-year 2024 data from 2,500+ SaaS companies found annual plans consistently drive stronger retention across ARR and ARPA levels. At $250-$500 ARPA, for example, median NRR was 88% for annual plans versus 76% for monthly plans. This is an observed cohort comparison rather than proof that billing cadence alone causes the full difference.

Customer success investment

• Digital Applied cites a vendor-stated 12-18-point NRR improvement from separating customer success and account management. The source labels the figure directional rather than guaranteed.
• Digital Applied's 2026 synthesis identifies onboarding completion as a lever that can lift the GRR floor, although it does not provide a universal quantified uplift.

Revenue operations efficiency

• m3ter reports involuntary churn can cost 2-5% of ARR annually. Payment retries and dunning workflows are therefore relevant retention levers, although the cited source does not state that all of that ARR is recoverable.
• High Alpha recommends clear upgrade paths and in-product triggers to surface premium features and expansion opportunities.

Orb's price evolution capabilities help teams plan and execute pricing changes, while Orb's usage-based billing engine documents simulations against real historical usage data. Together, these capabilities give teams a strong system for evaluating pricing impact, rolling out changes, and operating the resulting billing model on the same data foundation.

Frequently asked questions

What is a good net revenue retention rate for a SaaS company?

Good NRR depends on customer segment, business model, stage, and benchmark dataset. In Optifai's 2026 study, enterprise SaaS companies with ACV over $100K show 118% median NRR, mid-market companies with $25K-$100K ACV show 108%, and SMB-focused companies show 97%. These are descriptive benchmarks tied to the source dataset. SaaS Capital reports 102% median NRR and 111% top-quartile NRR for companies in the $25K-$50K ACV band. Separately, m3ter reports 115-130% NRR for consumption-based models, which is best treated as m3ter's vendor-reported benchmark rather than a universal usage-based result.

How does usage-based billing affect net revenue retention?

Usage-based billing can align revenue more closely with customer consumption and can translate customer growth into expansion revenue when the usage metric tracks value. m3ter reports 115-130% NRR for consumption-based models versus 95-105% for flat subscriptions, while High Alpha's 2025 benchmark data reported 105% for hybrid pricing, 102% for subscription pricing, and 99% for consumption pricing. The available evidence is based on cohort comparisons, so the relationship varies by sample and methodology. When customers increase consumption, usage-based pricing can convert that growth into revenue without requiring every expansion to depend on an explicit seat or package upsell. Orb's billing engine is purpose-built to meter raw usage events, apply flexible prices, and carry those calculations through invoicing at scale.

What is the difference between net revenue retention and gross revenue retention?

GRR measures revenue retained excluding expansion, while NRR includes expansion from upsells, cross-sells, price changes, and increased usage. GRR isolates the revenue retained after churn and contraction and has a maximum of 100%. NRR can exceed 100% when expansion revenue outpaces losses. Tracking both separates retention leakage from expansion performance.

Why has NRR declined across the SaaS industry since 2021?

Median private B2B SaaS NRR fell from approximately 105% in 2021 to 101% in 2024. The cited benchmarking establishes the decline but does not establish a single cause. ChartMogul places 2024 retention results in the context of slowing new business and changing growth dynamics. ChartMogul also found that top-quartile companies with $15M-$30M+ ARR did not reach 100% NRR in 2024. At the same time, expansion became more important, reaching 40% of total new ARR in 2024 versus a 25% median in 2022.

How can Orb support my company's NRR levers?

Orb supports the operational levers behind retention and expansion with accurate usage-based billing, customer visibility through spend controls, flexible price modeling, and pricing simulations on real data. Its standard metering architecture retains granular raw usage events for traceability and recalculation, while SQL-based metrics support sophisticated usage aggregation. Orb's dimensional price groups support pricing across multiple usage dimensions using a single pricing configuration for dimension combinations. Together, these capabilities give product, engineering, and finance teams a unified foundation for accurate billing, transparent customer experiences, pricing agility, and expansion-oriented monetization.