Churn

The foundation of revenue analysis

Churn, the loss of customers and their associated revenue, is arguably the most critical metric for the long-term health and valuation of any subscription business. It represents the primary obstacle to sustainable growth, making its deep analysis non-negotiable for ambitious SaaS teams. Managing churn directly impacts customer lifetime value and overall revenue stability.

In this section, we break down churn into three distinct, yet interconnected, measures. By tracking each one, you gain a complete, actionable understanding of customer value, financial stability, and your business's overall momentum:

• Logo Churn: Tracks the raw count of lost customers (accounts).
• MRR Churn: Tracks the gross revenue lost from those customers.
• Net MRR Churn: Tracks the net revenue loss or gain after accounting for expansion, contraction, and churn, serving as the inverse of Net Revenue Retention (NRR).