---
title: "Recurring Revenue Challenges for Modern SaaS Companies"
description: "As SaaS shifts to AI and usage-based models, finance teams face new billing hurdles. Learn how to overcome revenue recognition and forecasting challenges."
url: "https://ordwaylabs.com/resources/video/recurring-revenue-challenges-for-modern-saas-companies/"
type: "Post"
publisher: "Ordway"
language: "en-US"
published: "2025-05-20T02:05:19+00:00"
updated: "2025-12-26T10:43:54+00:00"
author: "Steve Keifer"
categories:
  - "Featured Video"
  - "Video"
---

# Recurring Revenue Challenges for Modern SaaS Companies

[Play Video](https://vimeo.com/1086743621)![Future city with Ordway billing and revenue management logo on top](/wp-content/uploads/2025/09/recurring-revenue-era-ai-1920x1080-1.jpg)

#### Investors Love Recurring Revenue

Some have called it the eighth wonder of the world. Its predictable, annuity-like revenue streams are highly sought after by institutional investors around the globe. And no industry has ever delivered faster-growing or higher-margin recurring revenue streams than [SaaS](/resources/research/list-of-largest-saas-companies/).

#### Early SaaS was Simple

In the early days of SaaS, managing recurring revenue was easy. Pricing was fixed based on user counts. Revenue schedules were straight-line amortization, and then more calculations could be done with ease. But as [software continues to eat the world](https://a16z.com/why-software-is-eating-the-world/). Things are getting a little more complicated.

#### Modern SaaS is Complex

SaaS companies are no longer just selling software. They’re selling payments, insurance, payroll, advertising, and AI-powered digital agents. Pricing is no longer just based on fixed fees. It’s variable based on usage, GMV tokens and credits, which means monthly billing, GAAP revenue and more or change each month too. Even contracts with subscription pricing or changing more frequently. From upsells and cross-sales, there is pressure to boost [net revenue retention](/resources/guides/net-revenue-retention-guide/) increases.

All these changes are creating tremendous complexity for the order-to-cash and record-to-report operations of SaaS finance teams.

#### Ordway – Automates SaaS Finance Challenge

That’s why we built Ordway, a building and revenue platform designed for today’s innovative business models. With support for AI-centric product offerings, [variable pricing models](/resources/guides/usage-based-pricing-guide), and high-velocity contract changes. Its [rating engine calculates billing](/products/usage-based-billing-software/) charges for over 100 different pricing metrics. Its [revenue recognition module](/products/revenue-recognition-software-asc-606-ifrs-15/) tracks deferred revenue schedules for dozens of different product types. Its analytics platform that keeps [SaaS metrics](/products/investor-metrics/) up to date for over a million different combinations of contract changes, helping boost the NPS scores of customers, auditors, and investors.

## About Ordway

Ordway is an all-in-one billing and revenue automation platform for growing B2B SaaS companies, typically from post-Series A to pre-IPO. It combines [Subscription Invoicing](/products/subscription-invoicing-software/), [Recurring Billing](/products/recurring-billing-software/), [Metered Billing](/products/metered-billing-software/), [SaaS Billing](/lp/ordway-saas-billing/), [SaaS Accounting](/products/saas-accounting-software/) and [AI-Powered Revenue Management](/products/ai-powered-revenue-management/) to automate complex pricing models, streamline revenue recognition and accelerate the financial close.