medium · Private Equity value-creation

A private equity analyst is assessing 'Apex Corp' which has a net revenue retention (NRR) of 118%.

What does this metric primarily indicate?

  1. 82% of existing customers canceled their subscriptions this period.
  2. The company grew its total customer base by 18% over the last fiscal year.
  3. The company's gross profit margin runs 18 points above its industry average peer group.
  4. Existing customers expanded their spending by 18% net of churn and contraction.

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