Expansion Rate

The additional recurring revenue generated from existing customers through either Upsells or Cross-sells, expressed as a percentage of existing ARR. Enterprise SaaS companies use this metric because the ACV of new customers can be expanded by capturing a larger share of their technology budgets either by selling to more users at the customers or by selling more products to the customer. Net Churn Rate / Net Expansion Rate – The net result of Gross Churn Rate and the Expansion Rate. Note that Net Churn Rate is shown as a negative number and Net Expansion Rate as a positive number.

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