The percentage of recurring revenue retained from existing customers over a period, including expansion and churn. NRR above 110% indicates strong product-market fit; below 90% signals structural churn. A Zoe sub-metric under Financial Vitality.
Net Revenue Retention reveals whether the product actually delivers value. NRR above 110% means existing customers expand and churn is minimal — a sign of strong product-market fit and customer success. Below 90% signals structural churn: either product problems, market saturation, or misaligned customer fit. For SaaS companies, NRR is often more predictive of long-term value than initial growth rate because it measures durability and indicates whether the business compounds or decelerates.
Zoe calculates NRR from HubSpot or equivalent CRM: beginning-of-period ARR from existing customers, minus churn, plus expansion, divided by beginning ARR. NRR is a sub-metric under Financial Vitality at 25% weight. Unlike growth rate, which can be artificially inflated by sales spending, NRR is customer-validated and reveals true retention health.
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