THE NEW NORMAL FOR SAAS

Summary from the TLDR Founders newsletter

The SaaS industry has experienced a significant slowdown in growth since 2021, with new business acquisitions becoming more complex and expensive. As a result, companies are shifting their focus towards retention and expansion, with Net Revenue Retention (NRR) becoming a critical metric for sustaining long-term growth. Companies with high NRR tend to grow faster and are more resilient to economic downturns, but achieving a 100%+ NRR is becoming increasingly challenging, especially for larger companies with a high subscriber count.