New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals
Kellblog
AUGUST 7, 2019
In this post we’re going to look at the management accounting side of multi-year SaaS deals that grow in value over time. Say you sign a three-year deal with a customer that ramps in payment structure: year 1 costs $1M, year 2 costs $2M, and year 3 costs $3M. Payment structure. $1M. GAAP revenue. $1M.
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