Video · 29 min

Usage-Based Pricing: The Next Evolution in Software Pricing

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Usage-Based Pricing: The Next Evolution in Software Pricing

Snowflake is one data point, and this session shows the pattern behind it: seven of the nine recent IPOs with the best net dollar retention priced on usage. That is the copyable part, separated from the once in a generation cloud migration.

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The question it answers

  1. How did Snowflake reach 158 percent net revenue retention, and what is actually copyable?

Read with it

  1. Accel's argument that expansion revenue is the specific thing that carries a company past $50M ARR, with the Twilio and Shopify... SeedToScale by Accel Article · 9 min read How can SaaS startups tackle scaling beyond $50mn in ARR? Vyushita Sahay
  2. The net retention numbers by pricing model (122 percent top quartile for usage-based versus 109 percent without) plus the... TechCrunch Article · 10 min read Usage-based pricing is a company-wide effort Kyle Poyar
  3. The primary-source teardown behind the famous 158 percent net dollar retention, including the detail most people miss: it was... Public Comps Article · 18 min read Snowflake S-1 and IPO Teardown Jon Ma
  4. The good, better, best NRR bands (100, 110, 120 plus) that boards actually benchmark against, sitting alongside the efficiency... Bessemer Venture Partners Report · report State of the Cloud 2023 Kent Bennett, Talia Goldberg, Mike Droesch and others
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