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Expansion Revenue

27 May, 2024 1 min read

What is Expansion Revenue for your B2B SaaS company?

Let us understand how your Customer Success team can keep tabs on, crunch numbers, and plan around expansion revenue.

What Is Expansion Revenue?

Expansion revenue is the revenue generated from existing customers who purchase additional products, services, or upgrades.

It is calculated by deducting the retained amount of recurring revenue from the total recurring revenue generated during a specific period.

How To Calculate Expansion Revenue?

Expansion Revenue = Total Recurring Revenue - Recurring Revenue Retained

An Example Of Expansion Revenue

A company has $10,000 in recurring revenue at the beginning of the month and $12,000 in recurring revenue at the end of the month.

Expansion Revenue = $12,000 - $10,000 = $2,000

Insights About Expansion Revenue

Expansion revenue is an important metric for measuring the success of upselling and cross-selling initiatives.

It indicates that customers are finding value in additional offerings from the company.

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