There are a lot of problems with calculating churn rates (ATR vs. ARR, net vs. gross, or count/$, multi-year deals, arbitrary LTs on negative churn...). Moreover, public companies don't generally release churn rates. Thus we're moving from a world of LTV/CAC and CAC payback period to a world of net dollar retention rates (NDRR).
Dave Kellogg, former CEO and Founder at Host Analytics, and Principal at Dave Kellogg Consulting breaks down Net Dollar Retention Rate and how to calculate it correctly. And learn about the move RPO (remaining performance obligation) when it comes to multi-year deals. Learn about all these rates and concepts for trying to figure out what your ARR base is worth and how to maximize it.
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