Could anyone help me understand the difference between gross retention rate and net retention rate?
As I understand the way they are using those terms,
Gross retention rate is the number of customers that are still there a year later (max score is 100%)
Net retention rate is the amount of total dollars being spent by the cohort of last year’s customers this year, compared to what they spent last year. (this is the one that counts).
For example Datadog’s 151% net retention rate means that last years cohort of customers (even allowing for a few that dropped out) are spending a total of $151 for every $100 that they spent last year.
Saul