What does Expansion Revenue reflect?

Expansion Revenue reflects the increase in revenue generated from existing customers due to either higher usage of products or services or through price increases. This metric showcases a company's ability to grow its financial performance by deepening relationships with its existing customer base rather than solely acquiring new customers.

When existing customers purchase more services, upgrade their subscriptions, or accept price adjustments, it signifies their satisfaction and continued investment in the relationship, contributing positively to the company's overall growth. This type of revenue is crucial for measuring customer success and illustrating the value customers find in the company's offerings, which can indicate a strong product-market fit and effective account management strategies.

In contrast, other options touch upon aspects that do not directly pertain to the concept of Expansion Revenue. Revenue generated from new customers refers to new customer acquisition, cost savings do not directly translate to revenue generation, and revenue losses due to cancellations pertain to churn rather than expansion.