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Revenue Modeling for a Subscription vs. Non-Subscription Business

SaaSOptics

The primary differences between revenue modeling for a subscription vs. non-subscription business is how revenue is recognized over time vs. up-front and how your billings will affect your balance in deferred revenue. . Revenue Modeling: Revenue Growth Over Time. Revenue Modeling: Deferred Revenue .

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What were the effects on Adobe’s finances when they switched from a licence purchase to a subscription model?

SaaStr

Switching to a SaaS model, and going deeper into SaaS, was a generational accelerant for Adobe: Stock price up 1300%. Revenue run rate grew from $4 billion in 2012 to an estimated $14 billion in 2020 (!). Q: What were the effects on Adobe’s finances when they switched from a licence purchase to a subscription model?

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New ARR and CAC in Price-Ramped vs. Auto-Expanding Deals

Kellblog

Equal Value: The Price-Ramped Deal. GAAP rules define precisely how to take this from a GAAP revenue perspective – and with the adoption of ASC 606 even those rules are changing. GAAP rules define precisely how to take this from a GAAP revenue perspective – and with the adoption of ASC 606 even those rules are changing.

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Rev Up Your Business with Revenue Intelligence: The Power of Deferred Revenue and Expansion Revenue

SmartKarrot

This is where revenue intelligence comes into play, helping companies to gain valuable insights into their revenue performance, identify growth opportunities, and drive profitability. In this blog, we will explore two key areas of revenue intelligence: deferred revenue and expansion revenue.

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The Top 10 Important Finance Mistakes First Time Founders Make

SaaStr

He probably lost several millions in his purchasing price because of it. Simply put, you recognize revenue or cost in the month it incurred. There is nothing worse than telling your board and investors you need to adjust your revenue recognized or revenue forecast. Take time to understand its details.

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How to Stop Micromanaging After $1m-$2m ARR. You Have To.

SaaStr

Double your pricing for new customer, on the largest deals. Accounting for recurring revenue companies is really nothing like that of non-recurring revenue companies, especially in modeling, deferred revenue, etc. Add a layer. Something new to boost your ACV and TCV. At least on the big customers.

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SaaS Balance Sheet Examples

Baremetrics

For a SaaS business, the deferred revenue category is particularly important. Deferred Revenue: Counterintuitively, if you have collected money for services that have not yet been rendered, this is a liability because you owe the client for those services. Why Is a Balance Sheet Important?