What It Covers
ARR & Revenue by Period
Recognized revenue and ARR movement across month, quarter, or year.
Cohort Retention
How each acquisition cohort retains and expands over time.
NDR and GRR
Net and gross retention by cohort, with running ARR balances.
Client LTV
Per-client lifetime value and contribution.
The Terms, Defined
GRR measures how much you keep before any growth; NDR measures how much you keep after growth. NDR above 100% means the existing base is growing on its own even before new sales.
Recognized Revenue
Recognized revenue is derived from your ARR through each stream’s recognition schedule, so the P&L revenue line ties back to the contracts and events that produced it. Drill any period to the customer, then to the individual events behind the number.How to Read a Cohort
1
Pick the granularity
Choose month, quarter, or year. The whole view re-buckets together so the numbers stay consistent.
2
Find the cohort
Each row is an acquisition cohort; each column forward is a later period in that cohort’s life.
3
Read NDR vs GRR
GRR tells you the floor (what survives churn); NDR tells you the trajectory (what the base does with expansion included).
Common Questions
My NDR is above 100% but GRR is below 100%. Is that a contradiction?
My NDR is above 100% but GRR is below 100%. Is that a contradiction?
No, that is the healthy case. GRR below 100% reflects some churn and contraction; NDR above 100% means expansion more than offset it. The base is growing net of losses.
Why does recognized revenue differ from ARR?
Why does recognized revenue differ from ARR?
ARR is an annualized run rate; recognized revenue is what lands in the P&L each period through the recognition schedule. A new contract can be live (counting in ARR) while its revenue recognizes over the following months.
What pulls a client's LTV up or down?
What pulls a client's LTV up or down?
Longer retention and expansion lift LTV; early churn and contraction pull it down. A high-NDR cohort tends to carry higher LTV because the base keeps growing.
Can I trace a period's revenue to specific customers?
Can I trace a period's revenue to specific customers?
Yes. Drill a period to the customer level, then to the individual events, so any recognized-revenue figure ties back to the contracts behind it.
If the Numbers Look Off
- If retention looks artificially high, confirm renewals are not being double-counted into the cohort’s running balance.
- If recognized revenue and ARR diverge more than expected, check the recognition schedule for the stream, since timing (not a data error) usually explains the gap.