Net Revenue Retention: What It Is and Why It Matters
Two SaaS companies can post the same growth rate, the same gross margin, and trade at wildly different valuations — a McKinsey analysis of more than 100 B2B SaaS companies found top-quartile net revenue retention performers trading at a median 24x revenue multiple, versus 5x for bottom-quartile peers. That’s not a rounding error. It’s nearly…