Usage models outperform the broader SaaS index (2020)
Usage-based businesses see continued growth at scale (29.9% vs. 21.7%) driven by best-in-class net retention (120% vs 110%).
They do this at even greater revenue scale with similar gross margin and rule of 40 profiles to their peers.
As a result, usage-based businesses are valued at a substantial premium (21.6x vs 14.4x revenue multiple).
Most relevant during:
GTM Fit phase
Scale phase
PMF phase
Most relevant for:
ACVs < $15K
ACVs $15K-$50K
ACVs > $50K
