Net Revenue Retention (NRR)AI/MLPublic
Net Revenue Retention (NRR) for AI/ML at Public (Usage-Based)
2026 data · Sample size: 120 · Source: McKinsey SaaS Growth Report
25th %ile
152%
Median
167.1%
75th %ile
179.6%
90th %ile
189.6%
▲Trending up year-over-year
About This Metric
Revenue retained from existing customers including expansion, contraction, and churn. Above 100% means growth without new customers.
(Starting MRR + Expansion - Contraction - Churn) / Starting MRR × 100
Higher is better · Unit: percentage
How to Improve
Build usage-based expansion triggers that automatically upsell. Ship premium features that solve adjacent problems. Create a dedicated expansion team separate from retention.
Ehsan's Analysis
Net revenue retention above 110% is the single strongest predictor of AI/ML company valuation at Public. Every point above 100% is worth roughly 0.5x ARR multiple. The founders who crack this build expansion triggers into the product itself rather than relying on account managers to upsell. Usage-based pricing with seat expansion is the fastest path.
J.
Ehsan Jahandarpour
AI Growth Strategist & Fractional CMO · Forbes Top 20 Growth Hacker · TEDx Speaker · 716 Academic Citations
Frequently Asked Questions
What is a good Net Revenue Retention (NRR) for AI/ML at Public?
The median Net Revenue Retention (NRR) is 167.1%. Top-quartile companies achieve 179.6%. Aim for top-quartile to be competitive.
How does Net Revenue Retention (NRR) change by company stage?
Net Revenue Retention (NRR) improves as companies mature. Later-stage companies benefit from scale and optimization.
How to improve Net Revenue Retention (NRR) in AI/ML?
Focus on the primary drivers specific to AI/ML. Track weekly with a 4-week rolling average and iterate on the biggest lever.