Series 79 practice questionmediumIndustry/Sector Analysis
Which metric is generally most important when comparing subscription software companies?
- ABarrels produced per day
- BLoad factor
- CNet revenue retention✓ Correct answer
- DSame-store sales
Explanation
Why C — Net revenue retention
Net revenue retention Net revenue retention shows how existing customer revenue expands or contracts over time and is central to recurring-revenue software economics. Because software valuations often hinge on durable growth, retention can matter as much as current margin.
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