Avalara Analyst Day Virtual
Financial
Definitions
NET REVENUE RETENTION RATE (NRR)
We believe that our net revenue retention rate provides insight into our ability to retain and grow
revenue from our customers, as well as their potential long-term value to us. We also believe it
reflects the stability of our revenue base, which is one of our core competitive strengths. We
calculate our net revenue retention rate by dividing (a) total subscription and returns revenue in the
current quarter from any billing accounts that generated revenue during the corresponding quarter
of the prior year by (b) total subscription and returns revenue in such corresponding quarter from
those same billing accounts. This calculation includes changes during the period for such billing
accounts, such as additional solutions purchased, changes in pricing and transaction volume, and
terminations, but does not reflect revenue for new billing accounts added during the one-year
period.
Our net revenue retention rate includes only customers with unique account identifiers in our
primary U.S. billing systems and does not include customers who subscribe to our solutions
through our international subsidiaries or certain legacy and acquired billing systems that have not
been integrated into our primary U.S. billing systems.
AVALARA ANALYST DAY VIRTUAL | 48View entire presentation