Net dollar retention measures the revenue retained and grown from existing customers over a period, including expansion and net of churn and contraction. Expressed as a percentage, above 100% means your existing base grows revenue without any new customers. It is among the strongest indicators of durable growth.

Net dollar retention above 100% means you could stop acquiring entirely and still grow, which is the closest thing to a durable growth advantage a business can have. It is the same idea as net revenue retention, and the takeaway is identical: expansion inside your base is cheaper and more reliable than constantly replacing churn with new logos.

Example:

Existing customers worth $1M grow to $1.15M through expansion, minus $50k lost to churn, for net dollar retention of 110%.

What is a strong net dollar retention?

Above 100% is strong, meaning existing customers grow revenue net of losses. Best-in-class businesses often exceed 120%.

Is net dollar retention the same as net revenue retention?

They are essentially the same measure under different names: revenue kept and expanded from existing customers, net of churn, as a percentage.