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Deep Dive on Usage Based Models with Gladly's CFO Todd Rakow

Run the Numbers

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Introduction

This chapter focuses on measuring and forecasting performance for companies reliant on customer activity for revenue, covering topics such as ARR calculation in a usage-based model, predicting usage patterns with net dollar retention rate, commissioning sales reps based on customer activity, and managing true ups. Strategies to avoid false signals, dealing with seasonality and excessive usage, and maintaining a balance between financial seriousness and enjoyment are highlighted with real-world examples and frameworks.

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