9 SaaS subscription-based actions with high retention rates

In today’s digital economy, subscription-based SaaS companies stand out for their ability to combine rapid growth with highly predictable cash flows. The strongest players not only acquire customers efficiently, but also maintain some of the highest net revenue retention rates (NRRs) in the industry, ensuring that existing customers increase their spending over time.

A high NRR, combined with favorable LTV/CAC ratios, translates into sustainable margins, stable recurring revenues, and significant upside potential. As cloud adoption accelerates and companies become increasingly dependent on digital infrastructure, SaaS leaders with this level of retention and scalability offer investors some of the most resilient and profitable opportunities in today’s market.

Here are 9 of the best subscription-based SaaS values with high retention rates. Learn why strong insurance coverage, recurring revenues, and growing international adoption make these companies attractive to long-term investors.

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Here are three of the best SaaS titles that stand out for customer loyalty, solid recurring revenues, and long-term growth potential.

Snowflake (SNOW)

Snowflake has created one of the most robust SaaS ecosystems in the enterprise software industry, revolutionizing the way companies manage and analyze their data. Unlike traditional on-premise systems, Snowflake’s cloud-based data warehouse allows companies to scale seamlessly across multiple clouds, eliminating infrastructure costs. This flexibility ensures that once companies have migrated their workloads to Snowflake, switching costs become prohibitive, making disengagement extremely rare.

Customers not only stay, but increase their usage as their data needs grow. This is reflected in Snowflake’s net revenue retention rate (NRR ) , which regularly exceeds 120% and recently approached 126%. This means that existing customers spend on average more than 25% more from year to year, a clear sign of satisfaction and expansion.

Snowflake further enhances retention by adding AI and machine learning capabilities, which increase the value of its platform over time. In essence, Snowflake does not just sell storage or computing power, but integrates as a critical data operating system that evolves with customers’ digital strategies.

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ServiceNow (NOW)

ServiceNow stands out as a leader in subscription-based SaaS with some of the highest renewal rates in the industry, approaching 98 percent. Its strength lies in offering a mission-critical workflow platform that powers IT service management, human resources, financial operations and, increasingly, artificial intelligence-driven automation.

As companies rely on ServiceNow to orchestrate day-to-day business functions, the platform is deeply integrated into the organization’s workflows. This integration leads to extremely high change costs, resulting in long-term customer lock-in.

In addition to retention, ServiceNow is also demonstrating steady growth in subscription revenues, which have recently increased by more than 20 percent year-on-year. Making this achievement even more attractive is the company’s ability to sell its customers new modules such as customer service management, security operations, and artificial intelligence automation.

The result is not only sustained renewal, but also a significant increase in revenue from the existing base. ServiceNow is more than just a SaaS subscription; it has become the backbone of companies’ digital transformation, which explains the exceptional loyalty of its customers.

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Datadog (DDOG)

Datadog has established itself as one of the best examples of high-loyalty SaaS because of its observability platform, which enables companies to monitor infrastructure, applications, and security in real time. Its subscription model benefits from a classic expansion dynamic: companies often start with one product, such as infrastructure monitoring, and then quickly adopt additional modules of logging, APM, security, or artificial intelligence observability.

This multi-product adoption strategy is one of the key factors in Datadog’s net dollar retention (DBNR), which has consistently exceeded 115 percent and, in some periods, 130 percent. The strength of Datadog’s retention is also fueled by the complex nature of modern IT. As companies migrate their workloads to the cloud and rely on microservices, they cannot afford to have blind spots in performance or security.

Once Datadog becomes central to a company’s monitoring strategy, it is not easy to replace it, keeping gross revenue retention rates in the90 percent range. In addition, the regular release of new Datadog products allows customers to increase spending over time, creating a powerful ripple effect on subscription revenues. This combination of need, integration, and expansion makes Datadog one of the most resilient and high retention SaaS companies in the market today.

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Disclaimer :

Please note that articles on TIKR are not intended as financial or investment advice from TIKR or our content team, nor are they recommendations to buy or sell stocks. We create our content based on TIKR terminal investment data and analysts’ estimates. Our analyses may not include recent company news or important updates. TIKR does not have a position in any of the stocks mentioned. We thank you for reading and wish you good investments!