Understanding Revenue Models: Recurring vs. Reoccurring

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Is ARR Dead? SaaS Metrics in the Age of AI with Kyle Poyar of Growth Unhinged

Run the Numbers

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CHAPTER

Understanding Revenue Models: Recurring vs. Reoccurring

This chapter delves into the critical differences between recurring and reoccurring revenue models in the SaaS industry, using relatable examples to illustrate the impact on financial strategies. The discussion emphasizes the importance of understanding customer behavior and its implications for revenue valuation and customer relationships.

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Kyle Poyar, author of Growth Unhinged and a leading expert in pricing, packaging, and product-led growth, joins CJ for this episode. Together they explore the evolving landscape of SaaS metrics in the age of AI with a focus on the paradigm shift from access-based pricing to outcome-based models. They also examine success-based pricing and how to attach metrics to these models. The discussion delves into AI’s impact on ARR (annual recurring revenue), questioning its relevance in this new era and the implications of these changes for CFOs, who must now navigate more complex revenue structures and margins. As AI reshapes the industry, Kyle and CJ discuss the potential rise of professional services revenue, which SaaS metrics may fall by the wayside and what new metrics will emerge. This episode provides deep insights into the future of SaaS pricing in the age of AI and the metrics that will define success.

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@cjgustafson222 (CJ)

@poyark (Kyle Poyar)

LINKS:

Growth Unhinged: www.growthunhinged.com

Kyle on LinkedIn: www.linkedin.com/in/kyle-poyar

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TIMESTAMPS:

(00:00) Preview and Intro

(01:50) Sponsor – Mercury | NetSuite

(06:05) AI Pricing Versus Conventional SaaS Pricing

(09:32) Defining an Agent or “Agentic” AI