Expansion revenue
Expansion revenue is additional recurring revenue from existing customers through upgrades, added seats or usage growth.
Expansion is the cheapest revenue a company can earn, because the customer is already acquired, onboarded and paying. It carries no acquisition cost.
It is what pushes net revenue retention above 100 percent, and its absence is why some products with low churn still struggle to grow.
Related terms
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Plainhub computes expansion revenue from money you record in plain words, so it is current when you need it rather than the night before a board meeting.
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