The Official SaaStr Podcast: SaaS | Founders | Investors cover image

SaaStr 680: The Most Important SaaS Metrics of 2023 with monday.com Co-Founders and SaaStr Founder Jason Lemkin

The Official SaaStr Podcast: SaaS | Founders | Investors

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The Importance of NDR in SaaS Growth

When you start the journey, especially in the first years, you're just focused on acquiring new customers and growing in the business. But eventually as a SaaS company, the majority of your revenue is actually coming from existing customers. So when you reach that point, NDR basically represents your growth rate. If you got 100% to 3% NDR, and 95% of your Revenue is coming fromexisting customers, your revenue is going to be about 30%.

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