Expansion Revenue

What is Expansion Revenue?

Expansion Revenue is the additional recurring revenue generated from existing customers through upsells, cross-sells, or increased usage. It excludes revenue from new customers and focuses entirely on growing the value of the current user base.

Why It Matters

• It is a key driver of net dollar retention and can lead to “negative churn” when expansion exceeds lost revenue.

• Generating revenue from existing customers is generally much cheaper than acquiring new ones.

• It demonstrates that the product continues to provide increasing value to customers as they grow.