Net Dollar Retention (NDR)
What is Net Dollar Retention (NDR)?
Net Dollar Retention (NDR) measures the percentage of recurring revenue retained from existing customers over a period, including expansion revenue and subtracting churn and contraction. It is one of the most important metrics for evaluating the health of a SaaS business.
Why It Matters
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An NDR over 100% indicates that the company is growing its revenue from existing customers even without new acquisitions.
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It reflects the product’s ability to provide increasing value and maintain high customer satisfaction.
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High NDR is strongly correlated with higher company valuations in the public and private markets.
