New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals
Kellblog
AUGUST 7, 2019
Let’s say in this example the customer is getting the exact same value in all 3 years (e.g., the right for 1,000 people to use a SaaS service) – so the payment structure is purely financial in nature and not related to customer value. Equal Value: The Price-Ramped Deal. Price-Ramped). GAAP revenue. $1M.
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