Net revenue retention

Revenue from last year's customers this year, including upgrades and downgrades and losses, as a percentage of what they paid last year.

A cohort paying ₹100 crore last year that pays ₹122 crore this year gives 122%.

Above 120% is excellent and above 110% is good. Below 100% means the existing customer base is shrinking, and the company is running to stand still: every rupee of new business first replaces a rupee lost.

The measure is powerful because it captures the whole customer relationship in one number, and it is the single best predictor of whether a subscription business compounds.

It also flatters companies with a small number of large customers who happen to have expanded, so read it with the customer concentration disclosure.