Hi Saul
(I’ve been lurking on this board for a few weeks, slowly getting up to date with the threads and philosophy. Great job - it is now one of my favorite places to come for potentially actionable information.)
Calculating renewal rate on the basis of net dollars means that if they offer a customer a discount to renew or renew early then the renewal rate will apparently take a hit.
In this sort of space, it is very common for customers to be offered incentives to renew early or to change their type of subscription, generally resulting in the customer paying a smaller invoice. Citrix are particularly aggressive with this sort of approach, for example.
Hopefully this adds some additional perspective to their data - their treatment of it actually seems refreshingly conservative!
Hope this helps
Cham