Recurring Revenue

NNU

Metric Name

Net New Users

Metric Family

Recurring Revenue

Metric Definition

Measures the number of new users who have started using a service within a specific time period, minus the number churned users during the same period

Formula

Net New Users = New Users - Churned Users

Application

Can help measure the actual growth of user base, indicating whether or not a company is growing or not. Can be used to measure customer retention by comparing new users against churned users. Can also be used to forecast future growth trends which can help in future business initiatives. Can provide a clear picture to investors about a company�s ability to grow customer base.

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