We scour the web every week to bring you the latest and greatest SaaS news and resources.
🥡 Investors and acquirers are showing an increasing openness to software consumption based revenues, as many of them view it no different than vanilla ARR as long as it comes with a positive net retention rate (NRR). A great example of a high consumption revenue winner is Bill.com – they have 50% standard software revenues and 50% based on the fees processed through their platform. Their ridiculous 121% NRR proves that the consumption revenues are not just recurring, but that they increase over time (it’s even more impressive that they do it serving SMBs). This is to say, don’t let the idea of “non-SaaS” recurring revenues scare you from testing a partially consumption model where you win when your customers win.
