Gross Churn Rate

The percentage of ARR that does not renewal at the contract’s renewal date. For an Enterprise SaaS company, we express this metric in dollars and not customer count because the revenue impact is more closely related to change in absolute dollars churn. Hence, we refer to this as Gross Dollar Churn Rate. Small/Mid-Market and B2C SaaS companies use customer count, and we call this simply Gross Churn Rate.

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