Expansion revenue is the additional revenue generated from existing customers after the initial sale. It includes any upgrades, add-ons, cross-sells, upsells, or increases in usage that result in more revenue over time.

Expansion revenue can come from:

• Moving a customer to a higher pricing tier (upsell)
• Adding new products/services or modules (cross-sell)
• Increasing seat count or usage volume
• Activating paid add-ons or features

Measuring expansion revenue helps teams track account growth, customer health, and net revenue retention (NRR). High expansion revenue often indicates strong product-market fit and happy customers who want more.