B2B SaaS Metrics Decoded! 🚀 — Part II

In our last discussion, we explored the top three key metrics crucial for investor updates:

• Revenue
• Burn Rate
• Runway

What’s more here?

There are two more interesting ones you should consider at some point:

#1. Net Dollar Retention (NDR)

B2B startups often discuss this metric, representing another method to calculate B2B SaaS retention in terms of dollar amount.

Net Dollar Retention measures the amount of revenue that you keep from your existing customer base and expand within your existing customer base.

Let’s take a look at an example:

A company with $10k MRR per customer in year 1 (January cohort) maintains 100% retention at $100k MRR for 10 total paying customers in year 2.

In a more realistic scenario, the company might lose 2 of the 10 customers in January of year 2. With 80% retention, the MRR in year 2 becomes $80k.

If performing well, the company might lose 2 customers but, through upselling…