Net Dollar Retention

aka Trailing Twelve Month NDR

NDR measures the average percentage change in revenue over the first 12 months of a customer. It is the most cost-efficient way of accelerating revenue growth and value creation. Best-in-class SaaS businesses typically have net dollar retention rates above 110%, and many of the top performing SaaS IPOs of the past few years have had net dollar retention rates above 130%. Net retention below 100% means churn and downgrades were greater than any growth you enjoyed from the expansion of existing customers. [1] [2]


[1] Net Dollar Retention vs. Net Revenue Retention - VC Adventure. Retrieved May 21, 2021, from https://sethlevine.com/archives/2021/03/net-dollar-retention-vs-net-revenue-retention.html

[3] Aktas, M. What is Net Dollar Retention and How to Calculate It?. Retrieved May 21, 2021, from https://userguiding.com/blog/net-dollar-retention-ndr/

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