2025: REVENUE RETENTION OR BUST

Summary from the TLDR Founders newsletter

In 2025, cloud companies' survival will hinge on proving they have customer churn under control. Investors are laser-focused on net and gross revenue retention (NRR and GRR) as leading indicators of efficient growth. Public companies' median NRR is 110%, with top performers over 130%. Retention benchmarks vary by factors like ACV, sales model, and company stage, so be wary of mismatched comparisons. While strong NRR can mask churn problems, GRR is an important early warning sign. The key is balancing both and plugging the "leaky bucket" before growth stalls out.