How To Calculate Net Revenue Retention in DELMIAworks | Arithmix

Learn how to calculate net revenue retention in DELMIAworks with our step-by-step guide. Improve your understanding of this key metric and optimize your business strategy for success.

Calculating net revenue retention is an important metric for any business looking to understand the health of their customer base. Net revenue retention measures the amount of revenue a company retains from existing customers over a certain period of time, after accounting for any lost revenue due to customer churn or downgrades. This metric is particularly valuable for subscription-based businesses, as it helps to identify the impact of customer retention on overall revenue growth.

What Is Net Revenue Retention?

Net revenue retention is a financial metric that measures the percentage of revenue a company retains from its existing customer base over a certain period of time. This metric takes into account any lost revenue due to customer churn or downgrades, and provides a clear picture of how well a company is retaining its existing customers.

To calculate net revenue retention, you need to take the total revenue generated from your existing customer base at the beginning of a period, and compare it to the revenue generated from the same customer base at the end of the period. Any lost revenue due to customer churn or downgrades is subtracted from the total revenue generated, and the resulting figure is divided by the total revenue generated at the beginning of the period. The resulting percentage is your net revenue retention rate.

When Is It Valuable To Calculate Net Revenue Retention?

Calculating net revenue retention is valuable for any business that relies on recurring revenue from its customer base. This includes subscription-based businesses, SaaS companies, and any other business that generates revenue from ongoing customer relationships.

Net revenue retention provides valuable insights into the health of a company's customer base, and can help to identify areas for improvement in customer retention and revenue growth. By tracking net revenue retention over time, businesses can identify trends and patterns in customer behavior, and make data-driven decisions to improve customer retention and revenue growth.

In addition, net revenue retention is a valuable metric for investors and stakeholders, as it provides a clear picture of a company's ability to retain and grow its customer base over time. By demonstrating a strong net revenue retention rate, businesses can attract new investors and stakeholders, and position themselves for long-term growth and success.

How Do You Calculate Net Revenue Retention in DELMIAworks

DELMIAworks itself isn’t naturally geared towards letting you calculate complex metrics like Net Revenue Retention. As an alternative, teams typically use products like Arithmix to import data from DELMIAworks and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like DELMIAworks, combine it with data from other systems, and create calculations like Net Revenue Retention.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

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Calculating Net Revenue Retention in Arithmix

Calculating metrics like Net Revenue Retention is simple in Arithmix. Once you've created your free account, you’ll be able to import your DELMIAworks data, and use it to create natural language formulas for metrics like Net Revenue Retention.

Arithmix is designed to give you the power to build any calculations you want on top of your DELMIAworks data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.

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