SaaS Talk™ with the Metrics Brothers is hosted by Dave "CAC" Kellogg and Ray "Growth" Rike. SaaS Talk™ provides unique insights, strategies, tactics and the metrics to measure customer acquisition, customer retention and customer expansion success for B2B SaaS companies.
Each 20-minute episode will cover a topic critical to profitable revenue growth chalked full of practical advice that can be introduced and applied in most B2B SaaS companies.
Contracted Annual Recurring Revenue (CARR) and Annual Recurring Revenue (ARR) are commonly used terms in the SaaS and Cloud Industry but are not standardized leading to inconsistent calculation. In fact, they were the first two metrics the SaaS Metrics Standards Board published standards upon.
Dave and Ray discuss the current definitions, calculations and how Usage-Based Pricing is impacting the historic ARR reporting model.
During today's episode CAC and Growth cover the following topics:
- Contracted Annual Recurring Revenue (CARR) - Definition and Calculation
- Annual Recurring Revenue (ARR) - Definition and Calculation
- Usage-Based Pricing and impact on revenue reporting
- Introduction of Recurring and Re-ocurring revenue
- Reporting variable revenue from Usage-Based Pricing models
With ARR not being a FASB / GAAP Revenue reporting standard - the opportunity and challenges for having multiple calculation and reporting models is easy to identify - but hard to rectify.
If you are using, considering using or do not use Usage-Based Pricing this conversation and episode is a great listen.
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