Symptom
At 118%, NRR signals that the existing customer base is worth more at the end of the period than at the beginning — without any new customer acquisition.
You asked
Revenue metrics look healthy but underlying growth is weak.
Symptom
At 118%, NRR signals that the existing customer base is worth more at the end of the period than at the beginning — without any new customer acquisition.
Cause
The mechanism is the net calculation that combines base retention and expansion into a single output.
Impact
When GRR is 82% and NRR is 118%, the thirty-six percent expansion revenue share is covering an eighteen percent base erosion and producing twelve percent net growth.
Revenue metrics look healthy but underlying growth is weak.
At 118%, NRR signals that the existing customer base is worth more at the end of the period than at the beginning — without any new customer acquisition.
The mechanism is the net calculation that combines base retention and expansion into a single output.
When GRR is 82% and NRR is 118%, the thirty-six percent expansion revenue share is covering an eighteen percent base erosion and producing twelve percent net growth.