In exploring the revenue dynamics of fast-growing companies, George Fraser analyzes the intriguing behavior of businesses with varying growth and net revenue retention (NRR) rates, using Fivetran as a case study. He illustrates how a company that doubles its customer base annually and sees a 50% growth in existing customers can initially experience a 150% growth rate, which over time converges to the customer growth rate, eventually stabilizing around 100%. This phenomenon occurs because the proportion of growth from new customers diminishes as overall revenue increases, which means the long-term growth rate aligns with the customer growth rate rather than expansion. Despite the initial impression that positive NRR might indicate a higher growth rate, it actually equates to higher average customer value, as long as the customer growth rate surpasses the expansion rate. The study highlights that while NRR enhances a company's value and revenue, the fundamental driver of growth remains the number of new customers.