onlycfo.io · 2024-12-12
· 539d
2025: Revenue Retention or Bust – GRR vs NRR in Cloud SaaS
The article emphasizes that revenue retention (both GRR and NRR) will be a survival metric for cloud companies in 2025, with median public company NRR at 110%. It argues that GRR is a critical leading indicator of fundamental business health and product-market fit, and that strong expansion revenue cannot mask underlying churn problems that erode revenue growth endurance.
Metrics in this report
Gross Revenue Retention (GRR)
94percent
Example company with $25M starting ARR and $1.5M churn
Net Revenue Retention (NRR)
110percent
median
Public cloud companies that report NRR
Net Revenue Retention (NRR)
110percent
Example company with $25M starting ARR, $1.5M churn, and $4M expansion