Public SaaS Company Disclosure Metrics for Retention and Renewal Rates

Much has been written about how to manage SaaS business performance and what metrics to measure. Among the biggest challenges is the availability of good benchmarking data. Our annual Private SaaS Company Survey attempts to address part of this challenge, providing benchmarking information for private companies participating in our surveys.

Another useful set of data to observe is disclosures of public SaaS companies. Through the work we’ve done with our SaaS IPO clients, we’ve compiled a comprehensive database of publicly reported SaaS metrics. At a recent event we hosted, we shared some of this data, specifically on retention rates, and received a lot of interest in having it more broadly disseminated, and so decided to put it online here.

Just as no two SaaS businesses are exactly the same, retention metrics reflect a wide variety of approaches–some focusing on customer count, while others reflecting changes in dollar value of recurring revenue (ARR or GAAP) from existing customers. Some report gross churn, reflecting only the lost business, while others report net retention/expansion, offsetting losses with the benefit of upsells and expansions.

We’ve compiled this material for many of the public SaaS companies in an easy-to-reference table below, including definitions from the companies, our interpretation of the definitions, and the value stated by each company at the time of IPO. At first glance, it’s pretty clear that “apples-to-apples” comparisons aren’t going to be easy. Nonetheless, the data assembled here are the only publicly available information for some of the most successful SaaS businesses in the world. With a little work and ingenuity, you’ll find that comparisons are possible, and the data is actually extremely useful.

For convenience, we’ve also made this available in our library of SaaS resources, which includes a PDF of the information below, as well as our annual surveys of privately-held SaaS companies and other reference materials focused on SaaS metrics.

Thanks for your interest and I hope you find these resources helpful. If you have any questions, please do not hesitate to reach out.

David Spitz (dspitz at pacific-crest.com)

The formulas below represent our interpretation of each company’s metric as described in their filing or other source. The expression follows this format:


SaaS Company Renewal/Retention Rates Summary Table of Contents


SaaS Company Renewal/Retention Rates Detail

COMPANY DEFINED TERM METRIC FORMULA RATE AT IPO DEFINITION
SaaS & license revenue renewal rate 92% Dollar-based renewal excluding the benefit of upsells, based on SaaS and license revenue
“We measure our SaaS and license revenue renewal rate on a trailing 12-month basis by dividing (a) the total SaaS and license revenue recognized during the trailing 12-month period from our subscribers who were subscribers on the first day of the period, by (b) total SaaS and license revenue we would have recognized during the period from those same subscribers assuming no terminations, or service level upgrades or downgrades.’ (424B4 filed on 6/26/15, Page 60)
Recurring revenue retention rate 102% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“We calculate our recurring revenue retention rate by comparing, for a given quarter, subscription revenue for all customers in the corresponding quarter of the prior year to the subscription revenue from those same customers in the given quarter. For the annual rate, we utilize the average of the four quarters for the stated year.” (424B4 filed on 3/20/14, Page 41)
Dollar-based net expansion rate 133% Property Mgmt

100% Legal

Dollar-based expansion rate including the benefits of upsells, based on GAAP revenue
“Our ability to maintain and grow relationships with our existing customers can be measured by our annual dollar-based net expansion rate for a given fiscal year, which compares the revenue generated from the sale of our core solutions and Value+ services in that year and the preceding year (or base year) from our base customers. We establish our base customers by determining the customers from which we generated revenues during the month of December in the year preceding the base year. We then calculate our annual dollar-based net expansion rate for a given fiscal year by dividing (i) revenue generated from the sale of our core solutions and Value+ services in the given fiscal year from our base customers by (ii) revenue generated from the sale of our core solutions and Value+ services in the base year from our base customers. As of December 31, 2014, our annual dollar-based net expansion rate was 133% for our property manager customers and 100% for our law firm customers.” (424B4 filed on 6/26/15, Page 55)
Net subscription dollar retention rate ~100% Dollar-based retention rate including the benefit of upsells, based on annual contract value
“We believe that our net subscription dollar retention rate provides insight into our ability to retain and increase revenue from our customers, as well as their potential long-term value to us. Accordingly, we compare the aggregate annual contract value of our customer base at the end of the prior year, which we refer to as the base annual contract value, to the aggregate annual contract value from the same group of customers at the end of the current year, which we refer to as the retained annual contract value. We calculate our net subscription dollar retention rate on an annual basis by dividing the retained annual contract value by the base annual contract value.” (424B4 filed on 9/23/2016, Page 58-59)
Contract renewal rate 97% Dollar-based renewal rate including the benefit of upsells, based on ACV
“We have experienced a contract renewal rate of at least 97% in each of the last five years.” (424B4 filed on 9/19/07)

“This rate reflects the implied annualized contract value of the customers at period end who were also customers at the end of the prior period, divided by the implied annualized contract value of the customers at the end of the prior period.” (athenahealth Investor Relations)

Net expansion rate >100% Dollar-based renewal rate including the benefit of upsells, based on ACV
“Such expansion is measured by our average quarterly net expansion rate, which calculates the year-over-year change in quarterly spending by customers that were paying customers during the same quarter in the prior year (“Prior Year Cohorts”), which is net of lost customers or reduced usage within a customer. Our average quarterly net expansion rate has been more than 100% for each quarter during fiscal 2014 and fiscal 2015.” (424B4 filed on 12/10/15, Page 63-64)
Active client retention rate 89.7% Customer count-based retention excluding the benefit of new customers
“Active client retention rate is calculated based on the number of active clients at period end that were also active clients at the start of the period divided by the number of active clients at the start of the period.” (424B4 filed on 2/24/12, Page 45)
Software services revenue retention rate >95% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“We calculate this metric for a particular period by establishing the group of our customers that had active contracts for a given period. We then calculate our software services revenue retention rate by taking the amount of software services revenue we recognized for this group in the subsequent comparable period (for which we are reporting the rate) and dividing it by the software services revenue we recognized for the group in the prior period.” (424B4 filed on 9/18/13 Page 53)
Retention rate (net dollar retention rate)

Note: Includes only customers with >$5k ACV and annual / multi-year contracts
130% Dollar-based retention including the benefit of upsells, based on ACV
“We calculate our retention rate as of a period end by starting with the annual contract value (ACV) from customers with contract value of $5,000 or more as of 12 months prior to such period end (Prior Period ACV) and a subscription term of at least 12 months. We then calculate ACV from these same customers as of the current period end (Current Period ACV). Finally, we divide the aggregate Current Period ACV for the trailing 12 month period by the aggregate Prior Period ACV for the trailing 12 month period to arrive at our retention rate.” (424B4 filed on 1/23/15, Page 53 & 59)
Recurring dollar retention rate 93% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“We calculate the recurring dollar retention rate by dividing the retained recurring value of subscription revenue for a period by the previous recurring value of subscription revenue for the same period. We define retained recurring value of subscription revenue as the committed subscription fees for all contracts that renew in a given period. We define previous recurring value of subscription revenue as the recurring value from committed subscription fees for all contracts that expire in that same period. We typically calculate our recurring dollar retention rate on a monthly basis.” (10-K filed on 3/5/13, Page 33)
Renewal rate 82% Customer count-based renewal excluding the benefit of new customers
“We define renewal rate for a period as the percentage of customers who renew annual or multi-year subscriptions that expire during the period presented. Renewal rate excludes customers under our discontinued third-party distribution agreements and prior SMB offering with subscriptions that remain active until cancelled.” (424B4 filed on 8/11/11, Page 43)
Annual retention rate 83% Customer count-based retention excluding the benefit of new customers
“We define annual retention rate as the percentage of customers on the last day of the prior year who remain customers on the last day of the current year, or for quarterly presentations, the percentage of customers on the last day of the comparable quarter in the prior year who remain customers on the last day of the current quarter.” (424B4 filed on 8/11/11, Page 42-43)
Annual net dollar retention rate 109% Dollar-based retention rate including the benefit of upsells, based on ACV
“We calculate annual net dollar retention rate for a given fiscal period as the aggregate annualized subscription contract value as of the last day of that fiscal year from those customers that were also customers as of the last day of the prior fiscal year, divided by the aggregate annualized subscription contract value from all customers as of the last day of the prior fiscal year. We calculate annualized subscription contract value for each customer as the expected monthly recurring revenue of our customers multiplied by 12.” (424B4, filed on 3/14/14, Page 49)
Subscription dollar retention rate >100% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“We calculate this metric for a particular period by establishing the cohort of core customers that had active contracts as of the end of the prior period. We then calculate our subscription dollar retention rate by taking the amount of fixed subscription revenue we recognized for the cohort in the period for which we are reporting the rate and dividing it by the fixed subscription revenue we recognized for the same cohort in the prior period. We do not include any revenue from the non-core, legacy products described above, any variable subscription fees paid by our customers or any implementation fees.” (424B4 filed on 5/23/13, Page 40-41)
Customer retention rate NA Customer count-based retention excluding the benefit of new customers

“One of the best measures we have for ourselves is our customers their repeat business. Founded in 1993, on the premise of helping drive costs out of businesses through innovation, our services are now trusted by over 15,000 clients around the globe with over 15 million users and a 95% retention rate.” (concur.com)
Retention rate 97.8% Customer count-based retention excluding the benefit of new customers

“Our monthly retention rate of unique paying customers (# of customers in a given month that continue to use the product in the following month S-1, Page 3) remains in our historical range of 97.8%, +/- 0.5%.” (10-K filed on 2/28/13, Page 4)
Annual dollar retention rate 95.8% Dollar-based retention excluding the benefit of upsells, based on contracted MRR
“We define annual dollar retention rate as the implied monthly recurring revenue under client agreements at the end of a FY, divided by the implied monthly recurring rev., for that same client base, at the end of the prior FY and excluding implied monthly recurring revenue from clients of our CSB and Cornerstone for Salesforce solutions. This ratio does not reflect implied monthly recurring revenue for new clients added between the end of the prior FY and the end of the current FY. However, incremental sales up to and not exceeding the original renewal amount to the existing client base as of Dec. 31, 2012 are included in this ratio. We define implied monthly recurring revenue as the total amount of minimum recurring revenue to which we have a contractual right under each of our client agreements over the entire term of the agreement, but excluding non-recurring support, consulting and maintenance fees, divided by the number of months in the term of the agreement.” (10-K filed on 3/1/13, Page 41)
Recurring dollar retention rate Sub.
97%

Mktg.
115%
Dollar-based retention including the benefit of upsells, based on GAAP recurring revenue
“We calculate our recurring dollar retention rate by dividing (a) Retained Revenue by (b) Retention Base Revenue. We define Retention Base Revenue as recurring revenue by product from all customers in the prior period; and Retained Revenue as recurring revenue by product from the same group of customers in the current period, including any additional sales to those customers during the current period. We do not include non-renewable revenue such as overage fees for registrations and other miscellaneous services in this calculation.” (424B1 filed on 8/9/13, Page 62)
Subscription dollar retention rate >100% Dollar-based renewal rate including the benefit of upsells, based on ACV
“We calculate the subscription dollar retention rate by dividing the retained average contract value of subscription revenue by the previous average contract value of subscription revenue. We define retained average contract value of subscription revenue as the average annual contract value from committed subscription fees for all contracts that renew in a given period. We define previous average contract value of subscription revenue as the average annual contract value from committed subscription fees for all contracts that expire in that same period.” (424B4 filed on 3/15/12, Page 39)
Net dollar retention rate >100% Dollar-based retention including the benefit of upsells, based on contracted MRR
“Net Dollar Retention Rate is a measurement, expressed as a percentage, of the aggregate contracted minimum subscription revenue normalized to a monthly basis of our customer base, or Implied Monthly Recurring Revenue, as of the first day of a 12-month period in relation to that of the same customer base as of the last day of such 12-month period. Our Net Dollar Retention Rate metric is calculated by dividing (a) Implied Monthly Recurring Revenue at the end of a 12-month fiscal period by (b) Implied Monthly Recurring Revenue at the beginning of the same 12-month fiscal period.” (424B4 filed on 8/1/12, Page 49)
Revenue Retention Rate 112% Dollar-based renewal rate including the benefit of upsells, based on annual revenue
“We calculate our revenue retention rate by dividing (1) total revenue in the current 12-month period from those customers who were customers during the prior 12-month period by (2) total revenue from all customers in the prior 12-month period. For the purposes of calculating our revenue retention rate, we count as customers all entities with whom we had contracts in the applicable period other than (1) customers of our wholly-owned subsidiary, Microtech, which generates an immaterial amount of our revenue in any given year and (2) in the first year following our acquisition of another business, customers that we acquired in connection with such acquisition.’ (424B4 filed 9/16/2016, Page 56)
Subscription revenue renewal rate 110% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“Subscription revenue renewal rate is calculated by dividing (a) total subscription revenue (including revenue related to messaging utilization above our clients’ contracted levels) in the current period from those clients who were clients during the prior year period, including additional sales to those clients, by (b) total subscription revenue (including revenue related to messaging utilization above our clients’ contracted levels) from all clients in the prior year period. This metric is calculated on a quarterly basis and, for periods longer than one quarter, we use an average of the quarterly metrics.” (424B1 filed on 3/22/12, Page 43)
Dollar-based retention rate 100% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“Our Dollar-Based Retention Rate is calculated by dividing our Retained Net Invoicing by our Retention Base Net Invoicing on a monthly basis, which we then average using the rates for the trailing twelve months for the period being presented. We define Retention Base Net Invoicing as recurring net invoicing from all clients in the comparable prior year period, and we define Retained Net Invoicing as recurring net invoicing from that same group of clients in the current period. We define recurring net invoicing as subscription and related usage revenue.” (424B4 filed on 4/4/14, Page 47-48)
Net churn 3.2% Vehicle count-based net churn including the benefit of vehicles added
“We calculate our net churn for a period by dividing (i) the number of vehicles under subscription added from existing customers less vehicles under subscription lost from existing customers over that period by (ii) the total vehicles under subscription at the beginning of that period.” (424B4 filed on 10/5/12, Page 10)
Subscription revenue retention rate

Note: Excludes commissions owed and customers with sidekick-only subscriptions
90.3% Dollar-based retention including the benefit of upsells, based on contracted MRR
“We compare the aggregate Contractual Monthly Subscription Revenue of our customer base as of the beginning of each month, which we refer to as Retention Base Revenue, to the aggregate Contractual Monthly Subscription Revenue of the same group of customers at the end of that month, which we refer to as Retained Subscription Revenue Our Subscription Dollar Retention Rate for a given period is calculated by first dividing Retained Subscription Revenue by Retention Base Revenue for each month in the period, calculating the weighted average of these rates using the Retention Base Revenue for each month in the period, and then annualizing the resulting rates.” (424B4 filed on 10/9/14, Page 47)
Net revenue retention rate >100% Dollar-based renewal rate including the benefit of upsells, based on GAAP revenue
“We calculate our net revenue retention rate by dividing the total revenue obtained from a particular customer in a given month by the total revenue from that customer from the same month in the immediately preceding year. This calculation contemplates all changes to revenue for the designated customer, which includes customer terminations, changes in quantities of users, changes in pricing, additional applications purchased or applications no longer used. We calculate the net revenue retention for our entire customer base at a given point in time. We believe our net revenue retention rate is an important metric to measure the long-term value of customer agreements and our ability to retain our customers. Our net revenue retention rate was over 100% at each of December 31, 2013 and 2014 and at each of September 30, 2014 and 2015.” (424B4 filed on 11/13/15, Page 50-51)
Renewal rate

Note: Excludes deals <$50k
Excl. Upsells:
95.3%
Incl. Upsells:
113.6%
Dollar-based renewal rate, based on ACV
“We measure renewal rates on transactions with annual subscription values over $50,000. We calculate our renewal rates by taking the actual dollar amount of contracts renewed for a given period and comparing those actual renewals to the dollar amount of contracts expiring in that same period. The renewal rate is derived by using the actual dollar amount renewed as the numerator and the total renewable contract amount as the denominator.” (424B4 filed on 12/13/11, Page 44)
Dollar-based renewal rate 89.6% Dollar-based renewal rate excluding the benefit of upsells, based on ACV
“A substantial portion of our clients have renewed their subscriptions each year. During 2002, 2003 and 2004, our clients renewed approximately 80%, 97% and 89.6%, respectively, of the aggregate contract value up for renewal during each of those periods.” (424B4 filed on 6/25/05, Page 32)
Member retention rate 85.4% Customer count-based retention excluding the benefit of new customers
“We define member retention rate as the percentage of members on the last day of the prior year who remain members on the last day of the current year, or for quarterly presentations, the percentage of members on the last day of the comparable quarterly period in the prior year who remain members on the last day of the current quarterly period.” (424B4 filed on 10/3/12, Page 62)
Dollar-weighted average renewal rate ~80% Dollar-based renewal rate excluding the benefit of upsells, based on GAAP revenue
“The dollar-weighted average renewal rate is the percent of our subscriptions, on a dollar basis, that could have terminated during a given period, in accordance with the terms of the subscription agreements but which were renewed.” (424B4 filed on 7/1/09, Page 32)
Revenue retention rate >100% Dollar-based retention including the benefit of upsells, based on GAAP revenue
“We calculate our revenue retention rate metric by dividing retained revenues by retention base revenues. We define retention base revenues as revenues from all advertisers in the corresponding prior period, and we define retained revenues as revenues from all advertisers from the prior period that remain advertisers in the current period. This metric is calculated on a quarterly basis, and for annual periods, we use an average of the quarterly metrics.” (424B4 filed on 3/22/13, Page 45-46)
Subscription dollar retention rate ~100% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“We compare the aggregate monthly subscription revenue of our customer base in the last month of the prior year fiscal quarter, the Retention Base Revenue, to aggregate monthly subscription revenue generated from the same group in the last month of the current quarter, the Retained Subscription Revenue. Our Subscription Dollar Retention Rate is calculated on an annual basis by first dividing Retained Subscription Revenue by Retention Base Revenue, and then using the weighted average Subscription Dollar Retention Rate of the four fiscal quarters within the year.” (424B4 filed on 5/17/13, Page 52)
Revenue retention rate
Note: Annualized revenue measured on a constant currency basis
108% Dollar-based retention including the benefit of upsells, based on constant currency revenue
“We calculate our revenue retention rate by annualizing revenue on a constant currency basis recorded on the last day of the measurement period for only those customers in place throughout the entire measurement period. We include add-on, or upsell, revenue from additional employees and services purchased by existing customers. We divide the result by revenue on a constant currency basis on the first day of the measurement period for all customers in place at the beginning of the measurement period. The measurement period is based on the trailing twelve months. The revenue on a constant currency basis is based on the average exchange rates in effect during the respective period.” (424B4 filed on 11/19/15, Page 46-47)
Dollar-based net expansion rate
Note: includes subscription, services and payments revenue
109% Dollar-based expansion including the benefit of upsells, based on GAAP subscription revenue
“We calculate our dollar-based net expansion rate by dividing our retained revenue net of contraction and churn by our base revenue. We define our base revenue as the aggregate monthly subscription, services and payments revenue of our subscriber base as of the date one year prior to the date of calculation. We define our retained revenue net of contraction and churn as the aggregate monthly subscription, services and payments revenue of the same subscriber base included in our measure of base revenue at the end of the annual period being measured.” (424B4 filed on 6/19/15, Page 15)
Dollar-based net expansion rate 115% Dollar-based expansion including the benefit of upsells, based on GAAP subscription revenue run-rate
“To calculate our annually dollar-based net expansion rate, we first establish the base period monthly recurring revenue from all our customers at the end of a month. This represents the revenue we would contractually expect to receive from those customers over the following month, without any increase or reduction in any of their subscriptions. We then (i) calculate the actual monthly recurring revenue from those same customers at the end of that following month; then (ii) divide that following month’s recurring revenue by the base month’s recurring revenue to arrive at our monthly net expansion rate; then (iii) calculate a quarterly net expansion rate by compounding the net expansion rates of the three months in the quarter; and then (iv) calculate our annualized net expansion rate by compounding our quarterly net expansion rate over an annual period.” (424B4 filed on 12/12/14, Page 43)
Revenue retention rate 91% Dollar-based retention excluding the benefit of upsells, based on GAAP subscription revenue
“Our average annual revenue retention rate tracks the percentage of revenue that we retain from our existing clients. We monitor this metric because it is an indicator of client satisfaction and revenue for future periods.” (424B4 filed on 4/15/14, Page 51)

Note: No formula provided. Formula shown is assumed based on characterization of rate as demonstrating revenue “retrieved from our existing clients”

Annual revenue retention rate

Note: Recurring revenue ex-interest income and professional services
>92% Dollar-based retention including the benefit of new customers, based on GAAP revenue
“We calculate our annual revenue retention rate as our total revenue for the preceding 12 months, less the annualized value of revenue lost during the preceding 12 months, divided by our total revenue for the preceding 12 months. We calculate the annualized value of revenue lost by summing the recurring fees paid by lost clients over the previous twelve months prior to their termination if they have been a client for a minimum of twelve months. For those lost clients who became clients within the last twelve months, we sum the recurring fees for the period that they have been a client and then annualize the amount. Interest income excluded.” (424B4 filed on 3/19/14, Page 46)
Retention rate 90% Dollar-based retention excluding the benefit of upsells, based on GAAP subscription revenue
“We derive this retention rate by calculating the total annually recurring subscription revenue from customers currently using our SaaS platform and dividing it by the total annually recurring subscription revenue from these current customers as well as all business lost through non-renewal.” (424B4 filed on 4/20/12, Page 46)
Revenue retention rate 128% Dollar-based retention including the benefit of upsells, based on GAAP revenue
“We calculate our revenue retention rate as the total revenues in a calendar year from customers who were installed customers as of December 31st of the prior year, expressed as a percentage of the total revenues during the prior year from those installed customers.” (424B4 filed on 3/20/14, Page 48)
Churn 3.5% Dollar-based churn including the benefit of upsells, based on MRR
“We define churn as the amount of any monthly recurring revenue losses due to customer cancellations and downgrades, net of upgrades and additions of new solutions, during a year, divided by our monthly recurring revenue at the beginning of the year.” (424B4 filed on 3/20/14, page 48)
Renewal rate 127% Customer count-based retention including the benefit of upsells
“We calculate our renewal rate by comparing the number of paid seats of all of our existing customers at the beginning of a twelve-month period to the number of paid seats for those same customers at the end of such period, taking into account nonrenewals, upgrades and downgrades. We exclude seats sold to new customers.” (424B4 filed on 4/12/13, Page 43)
Subscription dollar retention rate >100% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“Our Subscription Dollar Retention Rate metric is calculated by dividing (a) Retained Subscription Revenue by (b) Retention Base Revenue. We define Retention Base Rev. as subscription rev. from all customers in the prior period and Retained Subscription Rev. as subscription rev. from that same group of customers in the current period.” (424B4 filed on 4/21/11, Page 40)
Net monthly subscription dollar retention rate ~99% Dollar-based retention including the benefit of upsells, based on MRR
“We define our Net Monthly Subscription Dollar Retention Rate as (i) one plus (ii) the quotient of Dollar Net Change divided by Average Dollar Monthly Recurring Subscriptions. We define Dollar Net Change as the quotient of (i) the difference of our Monthly Recurring Subscriptions at the end of a period minus our Monthly Recurring Subscriptions at the beginning of a period minus our Monthly Recurring Subscriptions at the end of the period from new customers we added during the period, (ii) all divided by the number of months in the period. We define our Average Monthly Recurring Subscriptions as the average of the Monthly Recurring Subscriptions at the beginning and end of the measurement period.” (424B4 filed on 9/27/13, Page 59)
Dollar-based attrition rate

Note: Note: Excludes Marketing Cloud service offerings
Not Reported at IPO

High-teens (as of first disclosure- 8/20/2009)

Most Recent: 8-9%
Dollar-based attrition rate reflecting trailing period revenue lost
“Our typical subscription contract term is 12 to 36 months, although terms range from one to 60 months, so during any fiscal reporting period only a subset of active subscription contracts is eligible for renewal. We calculate our attrition rate as of the end of each month. Our current attrition rate calculation does not include the Marketing Cloud service offerings. Our attrition rate was between eight and nine percent as of July 31, 2016. We expect our attrition rate to remain consistent as we continue to expand our enterprise business and invest in customer success and related programs.” (First 10-Q disclosing attrition filed on 11/25/13)
Average annual customer renewal rate 100% Dollar-based renewal rate excluding the benefit of upsells, based on ACV
(Reported from S-1 filed 9/24/10 to 2012 10-K filed 3/8/13; no longer reported)
“Our average annual customer renewal rate, on a net dollar basis, reflects the percent of contracts that could have terminated during a period but which were renewed. This figure excludes upsells.” (SciQuest Investor Relations)
Recurring revenue retention rate 100% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
(Started reporting from 2013 onwards)
“We have changed a little bit, we are going to start giving a metric which is basically a same-store sales metric. And the primary reason for that is as we look at other SaaS companies that’s what all of them are doing.” – Rudy C. Howard – Chief Financial Officer, Q4 2013 results earning transcript.
“We calculate recurring revenue retention rates for a particular period by comparing the subscription revenue for all customers at the end of the prior period to the subscription revenue for those same customers at the end of the current period.” (10-K filed on 2/21/14, Page 10)
Net revenue retention rate 102% Dollar-based retention including the benefit of upsells, based on monthly recurring revenue of managed security clients
“To calculate our revenue retention rate for any period, we compare the monthly recurring revenue of our managed security client base at the beginning of the period, which we call our base recurring revenue, to the monthly recurring revenue from that same cohort of clients at the end of the period, which we call our retained recurring revenue” (424B4 filed on 4/22/16, Page 55)
Renewal rate 96% Dollar-based renewal rate excluding the benefit of upsells, based on ACV
“We calculate our renewal rate by subtracting our attrition rate from 100%. Our attrition rate is equal to the annual contract value from customers that are due for renewal in the period and did not renew, divided by the total annual contract value from all customers due for renewal during the period. Annual contract value is equal to the first twelve months of expected subscription revenues under a contract.” (424B4 filed on 6/29/12, Page 39)
Monthly billings retention rate 101% Billings-based retention including the benefit of upsells
“Monthly Billings Retention Rate, or MBRR, is calculated as of the end of each month by considering the cohort of merchants on the Shopify platform as of the beginning of the month and dividing total billings attributable to this cohort in the then-current month by total billings attributable to this cohort in the immediately preceding month. Billings includes billings from subscriptions, apps (net of referral fees), transaction fees and fees for Shopify Payments. For annual and quarterly fiscal periods, we report the average MBRR over the preceding 12 months.” (424B4 filed on 5/21/15, Page 55)
Dollar-based retention rate >110% Dollar-based retention including increases in transaction volume, based on transaction net revenue
“Revenue from our sellers has grown consistently over time, resulting in strong dollar-based retention rates. Transaction revenue net of transaction costs for each of our 18 quarterly seller cohorts (dating back to the second quarter of 2010) has grown year over year in every quarter since the first quarter of 2012. Over the past four quarters, retention of transaction revenue net of transaction costs for our cohorts has, on average, exceeded 110% year over year.” (424B4 filed on 11/19/15, Page 106)
Customer retention rate >90% Customer count-based retention including the benefit of new customers
“We calculate our customer retention rate by subtracting our attrition rate from 100%. We calculate our attrition rate for a period by dividing the number of customers lost during the period by the sum of the number of customers at the beginning of the period and the number of new customers acquired during the period.” (424B4 filed on 4/20/07, Page 32)
Dollar-based net expansion rate
Note: Excludes revenue derived from OEM sales
129% Dollar-based retention rate including benefits from upsell, based on revenue
“We calculate our dollar-based net expansion rate by dividing our recurring customer revenue by our base revenue. We define base revenue as the subscription revenue we recognized from all customers during the four quarters ended one year prior to the date of measurement. We define our recurring customer revenue as the subscription revenue we recognized during the four quarters ended on the date of measurement from the same customer base included in our measure of base revenue, including revenue resulting from additional sales to those customers. This analysis excludes revenue derived from our OEM sales. We expect our dollar-based net expansion rate to potentially decline as we scale our business.” (424B4 filed on 7/29/16, Page 15)
Dollar-based subscription renewal rate

Note: Excludes small customers
97% Dollar-based renewal rate excluding the benefit of upsells, based on ACV
“Renewals of subscription and support services for medium and larger more complex organization, on a dollar-for-dollar basis, remained strong at approximately 97%.” (10-K filed on 2/29/12, Page 42)
Dollar-based net expansion rate

Note: Variable customer defined as an active customer account that (i) is with a customer that had never signed a minimum revenue commitment contract for a term of at least 12 months and (ii) has met or exceeded 1% of revenue in any quarter
170% Dollar-based retention including the benefit of upsells, based on GAAP revenue basis
“Our dollar-based net expansion rate compares the revenue from active customer accounts, other than variable customer accounts, in a quarter to the same quarter in the prior year. To calculate the dollar-based net expansion rate, we first identify the cohort of active customer accounts, other than variable customer accounts, that were active customer accounts in the same quarter of the prior year. The dollar-based net expansion rate is the quotient obtained by dividing the revenue generated from that cohort in a quarter, by the revenue generated from that same cohort in the corresponding quarter in the prior year. When we calculate dollar-based net expansion rate for periods longer than one quarter, we use the average of the applicable quarterly dollar-based net expansion rates for each of the quarters in such period” (424B4 filed on 6/23/16, Page 70-71)
Annual revenue customer retention rate 96% Dollar-based retention excluding the benefit of upsells, based on GAAP subscription revenue
(Started reporting from 2010 onwards) “Our annual revenue customer retention rate for total recurring revenues was 96% in 2010. This rate is comprised of an annual retention rate exceeding 96% for existing SaaS customers and an annual retention rate of approximately 95% for existing license customers from which renewal maintenance revenues are derived.” (10-K filed on 3/1/11, Page 26)
Annual subscription revenue retention rate 187% Dollar-based retention including the benefit of upsells, based on annualized GAAP subscription revenue
“We calculate our annual subscription services revenue retention rate for a particular fiscal year by dividing (i) annualized subscription revenue as of the last day of that fiscal year from those customers that were also customers as of the last day of the prior fiscal year by (ii) the annualized subscription revenue from all customers as of the last day of the prior fiscal year.” (424B4 filed on 10/16/13, Page 47)
Subscription and support revenue retention rate 97.3% Dollar-based retention excluding the benefit of upsells, based on annualized GAAP subscription revenue
“We calculate our subscription and support revenue retention rate by annualizing the subscription and support revenue recorded in the first month of the measurement period for only those customers in place throughout the entire measurement period, thereby excluding any attrition. We divide the result by the annualized subscription and support revenue in the first month of the measurement period for all customers in place at the beginning of the measurement period. The measurement period is based on the trailing twelve months.” (424B4 filed on 12/12/14, Page 51)
Subscription and support revenue retention rate including add-ons 108.4% Dollar-based retention including the benefit of upsells, based on annualized GAAP subscription revenue
“We calculate our subscription and support revenue retention rate including add-ons by annualizing the subscription and support revenue recorded in the last month of the measurement period for only those customers in place throughout the entire measurement period. We divide the result by the annualized subscription and support revenue in the first month of the measurement period for all customers in place at the beginning of the measurement period. The measurement period is based on the trailing twelve months.” (424B4 filed on 12/12/14, Page 51)
Revenue retention rate 103% Dollar-based retention including the benefit of upsells, based on annualized GAAP subscription revenue
“We calculate our revenue retention rate as of the end of a particular twelve-month period by dividing (i) the implied monthly recurring subscription revenue under customer agreements as of the end of such period from those customers that were also customers as of the last day immediately preceding the beginning of such period by (ii) the implied monthly recurring subscription revenue under customer agreements from all customers as of the last day immediately preceding the beginning of such period. We define implied monthly recurring subscription revenue as the total amount of minimum recurring subscription revenue contractually committed to under each of our customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. This calculation includes the impact on our revenue from customer non-renewals, additions or decreases in subscribers, deployments of additional modules or discontinued use of modules by our customers, and price changes for our solutions.” (424B4 filed on 6/26/15, Page 49)
Subscription dollar retention rate 123% Dollar-based retention including the benefit of upsells, based on GAAP subscription revenue
“We calculate our subscription and support revenue net retention rate for a particular period by dividing subscription revenue for the four most recent quarters by the subscription revenue for the corresponding quarters in the preceding year for those customers for which subscription revenue was recognized in the corresponding quarters of the preceding year.” (424B1 filed on 10/3/14, Page 63)
Dollar-based net expansion rate

Note: Excludes MRR of customers on starter plan
120% Dollar-based retention including the benefit of upsells, based on MRR
“We calculate our dollar-based net expansion rate by dividing our retained revenue net of contraction and churn by our base revenue. We define our base revenue as the aggregate monthly recurring revenue of our customer base as of the date one year prior to the date of calculation. We define our retained revenue net of contraction and churn as the aggregate monthly recurring revenue of the same customer base included in our measure of base revenue at the end of the annual period being measured. Our dollar-based net expansion rate is also adjusted to eliminate the effect of certain activities that we identify involving the transfer of agents between customer accounts, consolidation of customer accounts, or the split of a single customer account into multiple customer accounts. While not material, we believe the failure to account for these activities would otherwise skew our dollar-based net expansion metrics associated with customers that maintain multiple customer accounts. Beginning with the quarter ended December 31, 2014, we adjusted our calculation of dollar-based net expansion rate to exclude customer accounts on the low cost Starter plan for our customer service platform. In prior periods, we presented a dollar-based net expansion rate, or the Historic Dollar-Based Net Expansion Rate, which included customer accounts on our low-cost Starter subscription plan for our customer service platform.” (10-K filed 2/17/15, Page 44)
Platform revenue retention rate 144.4% Dollar-based retention including the benefits of upsells, based on GAAP platform revenue
“We measure our platform revenue retention rate for a particular period by first identifying the group of programs that our clients launched before the beginning of the prior year comparative period. We then calculate our platform revenue retention rate by comparing the revenue we recognized for this group of programs in the reporting period to the revenue we recognized for the same group of programs in the prior year comparative period, expressed as a percentage of the revenue we recognized for the group in the prior year comparative period.” (424B4 filed on 3/27/14, Page 53)

About Pacific Crest Securities

Pacific Crest Securities provides premier investment banking services for technology, operating at the leading edge, where global connectivity is fueling an unprecedented expansion cycle. We apply our knowledge of the drivers of value creation and global network of relationships to technology — high-growth sectors, such as Cloud and big data, SaaS, global internet, mobility, next-gen infrastructure and communications, and industrial and energy technology. As a result, our clients — technology’s foremost institutional investors and market leading companies — rely on us to achieve superior returns and gain competitive advantage from the seismic shifts occurring in technology.

Pacific Crest Securities is the technology specialist division of KeyBanc Capital Markets Inc., a FINRA registered broker-dealer. Our sector bankers and transactional specialists collaborate to help clients identify and implement the right course of action, whether a financing, M&A or alternative event. Our clients include Box, Cvent, Eloqua, ExactTarget, FireEye, Fleetmatics, Guidewire Software, Proofpoint, ServiceNow, SevOne, Splunk, Tableau Software, Veeva Systems, Workday and Zendesk, among others.

Pacific Crest Securities has offices in Boston, Charlotte, New York, Portland, San Francisco, Seattle, Stamford, as well as the Beijing Representative Office and Pacific Crest Securities UK, Ltd, London.

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