NRR Year over Year or Last 12 months??
Over the last year I've calculated NRR by taking our ARR from last year (December's revenue x 12) and comparing that to each month of this year. This December will give us 2023's overall NRR.
However, my finance team is challenging that. They are taking each month's revenue and comparing it to that month's revenue last year. (Aug 23 over Aug 22 instead of Aug 23 over Dec 22).
Additionally, our overall company performance metric is based on the average of the last 12 months, not year-over-year ARR.
I thought the way I calculated it was most common. Any insights would be appreciated.
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