NRR (Net Revenue Retention) measures the revenue evolution from the existing customer base over a period — incorporating both losses (churn, downgrades) and expansions (upsell, cross-sell). NRR = (Opening MRR - Churned MRR + Expansion MRR) / Opening MRR × 100. NRR above 100% means expansion from existing customers more than offsets churn — the company grows without acquiring a single new customer. It is the most powerful stickiness and customer value indicator in SaaS valuation. An NRR of 120%+ justifies significantly higher ARR multiples than peers at 95–100%, reflecting fundamentally superior unit economics and growth visibility.

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Example: a Swiss B2B SaaS platform presents NRR of 118% on CHF 4.0 million opening MRR: Churned MRR -CHF 280,000 (7% churn) and Expansion MRR +CHF 1,000,000 (premium module upsell). NRR = (4,000 - 280 + 1,000) / 4,000 = 118%. This above-median NRR (sector median: 102%) justifies a 10x ARR multiple vs 6x for peers at NRR <100% — a CHF 16.8 million valuation difference on the same CHF 4.2 million ARR base.

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NRR is one of the most determinant parameters in Hectelion's SaaS valuation models — it directly conditions the ARR multiple and long-term value trajectory.