Below is the Q4 2024 net dollar retention of every SaaS company that has IPO’d since October 2017; 60 of the companies are still public and 43 of them released net dollar retention data in Q4. The data also shows NDR historically going back to Q1 2022.
Stable NDR. The current median of 108% is strong, but that figure fell from H1 2022 when NDR was over 123%. The average NDR shows similar trends. Note however, we’ve stabilized at ~110% over the past 6 quarters which in our view is a real trend.
Other good signs. In Q3 of 2022, median NDR was 123%. Then in Q4 of 2022 it fell hard to 115%. We believe this is because SaaS renewals tend to be much heavier in Q4 than other quarters, so if you’re going to have churn you’ll really see it in Q4. Importantly, we didn’t see a similar drop from Q3 2023 to Q4 2023 and don’t see one from Q3 2024 to Q4 2024, so a good sign of stability.
Adjustment. The number of companies reporting NDR in Q4 is always higher because it’s part of their annual report. If we remove the companies that only report annually (we do this to create consistency in the data), then NDR would have been 110% on median and 109% on average, in line with the historical trend.
Overall, retention trends held nicely through Q4.
Thank you for the readership. Visit blossomstreetventures.com for more blogs and SaaS data. Email the author at sammy@blossomstreetventures.com or connect on LinkedIn.
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