Your insights serve as a reminder that whenever NDR dips, we must pinpoint whether it’s driven by churn or a drop in ticket sizes. Without making that distinction, we risk missing the real issue.
For NRR calculation, you should only consider Expansion, Contraction, and Churn for the same client base, right? Based on your formula, it seems you are also including clients added in the middle of the year, which could impact Expansion and Churn but were not included in the denominator.
Your insights serve as a reminder that whenever NDR dips, we must pinpoint whether it’s driven by churn or a drop in ticket sizes. Without making that distinction, we risk missing the real issue.
For NRR calculation, you should only consider Expansion, Contraction, and Churn for the same client base, right? Based on your formula, it seems you are also including clients added in the middle of the year, which could impact Expansion and Churn but were not included in the denominator.
Yes it should be the same client base as the starting ARR. You are right that isn’t super clear tho