Understand how usage-based billing for monthly minimum contracts with overage fees is performed. View steps and calculations for an example contract.
OrdwayOctober 28, 2022
Recurring Themes
Usage-based pricing succeeds when the whole business understands and believes in the model. Everyone from the Human Resources professionals managing sales compensation plans to the Customer Success Managers.
OrdwaySeptember 25, 2022
How can you partner with the business to ensure timely payments & accelerate cash flows? Success requires providing visibility to payment status.
OrdwayAugust 20, 2022
ARR does not always equal 12x MRR for complex SaaS business models. Learn the 13 different variables that impact SaaS ARR calculation.
OrdwayJuly 15, 2022
How do companies with usage-based pricing report on ARR? We compiled ARR definitions from the investor filings of 10 large public companies.
OrdwayJune 30, 2022
What is the difference between ARR and revenue at SaaS companies? GAAP revenue is reported on the income statement following ASC 606 and IFRS 15 accounting standards. ARR is an operating metric defined by the…
OrdwayMay 19, 2022
Learn how usage-based billing for prepaid credits and monthly drawdowns works. See an example to understand the key steps in the process.
OrdwayMay 19, 2022
ARR, LTV/CAC, Net Retention - which metrics should you focus on in early stage vs late stage SaaS companies?
OrdwayApril 25, 2022
Many SaaS companies offer pay-as-you-go options to accelerate new customer acquisition. If customers have the right to terminate at any time should are these monthly plans recurring revenue to include in MRR/ARR reporting?
OrdwayMarch 15, 2022
Determining whether software is taxable in various US states and jurisdictions can be quite complex. 45 states tax software differently
OrdwayFebruary 22, 2022
