Expansion Revenue

I. Formal Definition

Recurring revenue growth from existing customers through upsell to higher tiers, cross-sell to additional products, or volume expansion within an existing product. Expansion revenue is the principal driver of NRR above one hundred percent and is the federation-recognised primary measure of growth efficiency from the existing base. The federation requires expansion to be tracked separately from new business and reported on the MRR roll-forward, with each expansion class disclosed under UFMS-001:3.2. Expansion attributed to inflation-driven repricing is reported separately.

II. Etymology

A SaaS metrics coinage of the 2010s; the construction grew alongside the cohort analysis literature in the cloud public company reporting era.

III. Federation Usage

Federation members report expansion revenue separately from new business, broken out by expansion class. Inflation-driven repricing is reported separately. Methodology consistency is verified at audit and is required for reconciliation to the customer record under MEV-Annex:4.1.

IV. Related Terms

• upsell
• downsell
• net-revenue-retention
• cohort-retention

V. Authoritative Citations

• UFMS-001:3.2UFMS Article III - Expansion
• MEV-Annex:4.1MEV Annex IV - Expansion Reporting

VI. Citation in BibTeX

@misc{ifo4_glossary_expansion_revenue,
  title        = {{Expansion Revenue}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{expansion-revenue}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/expansion-revenue},
  note         = {Category: Unit Economics; key: ExpansionRevenue}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.