Gross retention is the percentage of recurring revenue retained from existing customers over a twelve-month period, excluding any expansion revenue (upsell or cross-sell). Gross retention measures the durability of the existing customer base in isolation from sales-driven expansion, and is a more conservative measure of recurring revenue stability than net revenue retention.
Gross retention above 90% is generally considered strong for Australian B2B SaaS in the sub-$20M bracket; below 80% typically signals churn risk that compresses valuation multiples.