What is expansion revenue ?
Expansion revenue is additional revenue generated from existing customers through upsells, cross-sells, or usage growth.
Expansion revenue is the incremental revenue earned from your existing customer base, driven by plan upgrades, additional seats, new modules, or increased usage. It is a key indicator of product value and a driver of NRR above 100%.
Example: A customer starts on a $500/month plan and after 6 months upgrades to a $1,200/month plan and adds a premium support package. The $700/month increase is counted as expansion revenue.
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