Revenue Metrics

Expansion Revenue

Also: Upsell RevenueNet Expansion

Additional recurring revenue from existing customers through upsells, cross-sells, and seat or usage growth.

Why it matters

Expansion revenue is usually the most efficient growth you have, it comes from customers who already trust you, at a fraction of the cost of new acquisition. It is the engine behind net revenue retention above 100 percent. A strong expansion motion makes the whole business more capital-efficient.

What good looks like

Healthy businesses generate a meaningful and growing share of new revenue from expansion, which shows up as NRR above 100 percent. If almost all growth comes from new logos, you are leaving efficient revenue on the table.

Related terms

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