The Importance of Consumption Pricing

The speaker calculates the CAC ratio based on the minimum commitment of the audience with usage-based pricing./nThe speaker also calculates a second CAC ratio based on the actual realized ARR from those usage-based pricing deals./nThe approach of not looking at the first quarter revenue and considering the whole year for metrics is considered reasonable./nFast sales cycles with deals closing in less than a month and expanding in the next month or quarter can impact the metrics./nMost metrics are based on six-month sales cycles and deals that expand over years, not months or quarters.