What is Dollar-Based Net Expansion Rate?

Dollar-based net expansion rate (also known as “”net dollar retention rate”” or “”net revenue retention rate””) is a key performance metric used to assess the revenue growth and retention of existing customers for a company that operates on a subscription or recurring revenue model. It provides insights into how effectively a company is retaining and expanding its customer base over a specific period.

The dollar-based net expansion rate measures the change in revenue generated from existing customers over a given period, taking into account the effects of expansion (upsells, cross-sells) and contraction (downgrades or churn) of customer accounts.