KEY INSIGHTS → Overall, NRR performance will be slightly worse in 2023 → High performers are focussed on growth → NRR is diverging by category → A dedicated team is the best way to boost NRR performance → Hybrid pricing is associated with higher NRR Overall, NRR performance will be slightly worse in 2023 The percentage of companies with good NRR performance (105 to 119) is down, while the percentage with nega琀椀ve NRR performance is going up. • The percentage of companies expec琀椀ng nega琀椀ve NRR is up 昀椀ve percentage points from 27% to just over 32%. • The percentage of companies with good NRR performance (105 to 109) is down more than eight percentage points from 31% to 22%. • The percentage of companies with excellent performance is also up, from 18% to 22%. The growing number of companies with excellent Figure 4: NRR Performance Expecta琀椀ons for 2023 NRR is an encouraging sign. It is also worth no琀椀ng that companies were in the excellent group from all SaaS ver琀椀cals. Overall, NRR performance is diverging. The number of respondents with excellent NRR performance went up (greater than 120), but the number with nega琀椀ve NRR performance went up as well. Part of this is driven by diverging performance in di昀昀erent categories of SaaS so昀琀ware. PeakSpan & Ibbaka Net Revenue Reten琀椀on Research Report September 2023 12