Expansion Revenue % of ARR
Expansion ARR / Total ARR. <10% = pure new-logo growth. 10-20% balanced. 20-30% expansion-driven. 30%+ world-class (Snowflake, Datadog).
| Expansion ARR | — |
| Total ARR | — |
| Expansion as % of ARR | — |
| Verdict | — |
Expansion Revenue as % of Total ARR measures how much growth comes from existing customers vs new logos. World-class SaaS (Snowflake, Datadog, MongoDB) generate 30%+ from expansion. Indicates product stickiness and account growth potential.
Building Expansion
Multi-product strategy (Slack added video calling, voice calling). Usage-based pricing (charges grow as customer grows). Seat-based expansion via virality. Upsell triggers (limits hit, premium feature needed). Customer Success ownership of NRR.
Expansion vs Net New Logo
Net new logo = higher CAC, longer ramp. Expansion = lower CAC (5-10x cheaper), faster value. Mature companies derive most growth from expansion. Early companies should still focus on logos for market validation.
Tracking Methodology
Use rev recognition: expansion = additional ARR from same customer ID. Exclude price increases (separate metric). Exclude churn offset. Calculate quarterly. Compare year-over-year trend.
Last updated May 2026. Sources: Bessemer Atlas Benchmarks.