MRR movements and what NDR reveals

A big pipeline means little if customers slip away faster than you add them. The truth sits in monthly recurring revenue (MRR), net dollar retention (NDR), and unit economics. Here’s a clear, data-driven way to assess enterprise health, link outcomes to decisions, and stay focused on sustainable growth.

Why does MRR beat pipeline for enterprise health?

MRR shows reality, not potential. The net change each month is the sum of five movements. Track them to see if growth is structural or just luck from a few large deals.

What is the MRR life cycle and its five movements?

• Inflows: new customers, reactivations, expansions.
• Outflows: contractions, churn.
• Formula: add the gains, subtract the losses.
• December 2025 example: +$23.6k new, +$18k expansions, −$19k churn, net new MRR +$22.4k.
• Result: total MRR grew from $452k to $473k.
• Insight: when outflows exceed inflows, the business shrinks, regardless of signed deals.

Where are the inflection points in 2025 growth?

• Flat trend around $270k for most of 2025.
• Sharp September jump tied to the El Salvador contract.
• Sustained acceleration from November linked to Platzi Learn and reduced account manager workloads.
• Takeaway: link financial shifts to specific operational changes to validate what truly drives growth.

What does net dollar retention say about long-term growth?

NDR shows how much revenue you keep from a customer cohort over time. It is the most important signal of durability because it bakes in expansions, contractions, and churn.

How did NDR move from 72% to 82%?

• January 2025 NDR: 72% (a leaky bucket).
• January 2026 NDR: 82% after cutting accounts per manager from 47 to 21.
• Effect: better service, more expansions, less churn.
• Proof point: January 2026 expansion revenue of $15k outweighed churn plus contraction.

Why target 90% and what happens above 100%?

• Q1 target: 90% indicates solid retention progress.
• Above 100%: the business grows even with zero new customers.
• Operator focus: keep moving NDR toward 90%+, then defend the gains.

How should you read unit economics and the 2026 plan?

Unit economics prevent false alarms. Look at lifetime value (LTV), customer acquisition cost (CAC), and their ratio. Always add context: volume, fixed costs, and contract size.

Why did LTV rise to $42.1k (+27% YoY)?

• Larger contract values, including the first $100k Platzi Learn deal.
• Improved retention boosts expected cash flows per account.
• Signal: high-value product plus better service increases durability and expansion potential.

What explains the CAC spike to $36.8k?

• Fully loaded CAC includes fixed costs (salaries, tools, overhead).
• January 2026 closed only two deals vs. a usual seven or eight.
• With the same fixed costs and fewer customers, CAC jumps mathematically.
• Meaning: a timing issue, not a sales performance failure.
• Guardrail: if CAC ever drops to $5k, check for a flood of small, low-quality deals. Cross-reference with average contract value and ideal customer profile fit to avoid short-term “efficiency” that hurts retention.

How do the 2026 revenue pillars align with metrics?

• Target: $17M total revenue.
• Pillars:
  • New core acquisition: $4.9M.
  • Platzi Learn: $7.5M from large, high-LTV contracts.
  • Enterprise retention: $4.1M supported by rising NDR.
• Alignment: retention depends on NDR trending toward 90%+. Platzi Learn relies on maintaining high LTV via larger contracts and solid expansions. Acquisition must avoid CAC distortions by monitoring volume and deal quality.

Have a question about interpreting NDR or diagnosing CAC swings? Share your scenario and let’s break it down together.