Definition
Expansion bookings are new contracted revenue from existing customers (upsells, seat expansion, upgrades) in a period.
Formula
Expansion bookings = bookings from existing customers
Example
If 30 customers upgrade and add $150k ARR, expansion bookings are $150k.
How to use it
- Separate expansion from new bookings to see growth mix.
- Use consistent contract terms so expansion is comparable over time.
Common mistakes
- Blending expansion with new logos and losing visibility into retention health.
- Counting renewals as expansion when price or scope is unchanged.
Measured as
Expansion bookings = bookings from existing customers
Misused when
- Blending expansion with new logos and losing visibility into retention health.
- Counting renewals as expansion when price or scope is unchanged.
Operator takeaway
- Separate expansion from new bookings to see growth mix.
- Use consistent contract terms so expansion is comparable over time.
- Keep Expansion Bookings consistent by cohort, segment, and period before you use it as a decision signal in planning or reporting.
- Interpret the metric alongside retention, margin, or payback so one ratio does not hide the real operating trade-off.
Next decision
- Read Retention & churn hub: cohorts, GRR/NRR, and retention curves if the decision depends on interpretation, policy, or trade-offs beyond the raw formula.
- Decide whether Expansion Bookings is a growth, retention, or efficiency signal before you set targets around it.
Where to use this on MetricKit
Guides
- Retention & churn hub: cohorts, GRR/NRR, and retention curves: A practical hub for retention measurement: churn rate, GRR/NRR, cohort retention curves, and how to set retention targets without getting misled by noise.
- Sales ops metrics hub: quota, pipeline, win rate, and capacity planning: A practical hub for sales ops planning: quota attainment, pipeline coverage, required pipeline, sales capacity with ramp, and OTE math.