Net New Contracted Logos
The net change in distinct customer logos in a period: new contracted logos signed minus logos lost when their final active contract ends.
◆ Count
Formula
Built from
What it measures
A net count of distinct customer logos — entities with at least one active contract — added during the period after subtracting those lost to churn. It counts customers, not dollars: a Fortune 500 account and a 5-seat startup each count as exactly one logo, regardless of contract value.
Why it matters
NNCL tells you whether your customer base — not just your revenue — is actually growing. Revenue can rise on expansion alone while you quietly lose logos, leaving you more concentrated and more fragile. Investors read NNCL as the volume engine behind growth: it shows whether the funnel is producing customers or just squeezing the ones you have. Paired with revenue metrics, it separates durable land-and-expand growth from a shrinking base propped up by a few big accounts.
How to read it
Read NNCL as a trend, not a single number, and always alongside a revenue metric. Positive and growing means acquisition is outrunning attrition — healthy market penetration. Flat or negative means churn is consuming your wins; intervene on retention or acquisition. The cross-read matters most: high NNCL with flat Net New CARR means you're landing small, low-ACV logos; low NNCL with strong Net New CARR means you're landing whales and concentrating risk. Compare quarter-over-quarter and year-over-year to separate seasonality from a real trend.
What good looks like
Good
NNCL grows or holds steady quarter-over-quarter, with new logos comfortably outpacing churned ones and gross churn staying low relative to gross adds.
Watch
NNCL is still positive but shrinking, or seasonal spikes are flattening — check whether logo churn is climbing or new-logo velocity is slowing.
Bad
NNCL is flat or negative for consecutive quarters — churn is eroding base growth and demands urgent retention or GTM intervention.
Watch-outs
- Confusing logos with revenue. NNCL says nothing about dollars — 33 net new logos could be $33K or $3M of new business. Always pair it with Net New CARR before declaring growth healthy.
- Letting positive NNCL mask a leaky funnel. A net +5 can hide 40 new and 35 churned — a business burning through customers as fast as it lands them. Always read the gross new and gross churned counts underneath.
- Counting on activation instead of contract status. A logo signed in month 2 but onboarded in month 3 belongs to month 2 (signature), not month 3 — count on the contract event or you'll double-count and smear period boundaries.
- Over-counting multi-contract accounts. A customer with three contracts is one logo and only churns when the last one ends; treating each contract as a logo inflates both new and churned counts.
Worked example
Hypothetical
In Q2 your sales team signs 45 new customer contracts (NCL = 45). Over the same quarter, 12 customers let their final contract lapse without renewing (CCL = 12). NNCL is 45 − 12 = 33 net new logos — your customer base expanded by 33 distinct companies that quarter.
Variants & windows
The same metric re-expressed by a mechanical transform — a trailing window, a growth rate, a per-unit scaling, or a book/segment cut. Each is computed from Net New Contracted Logos above.
- Net New Contracted Logos Net new · Contracted basis