Expansion ARR and NRR in a Variable Pricing Environment - Part 2

Expansion percentage and Net Revenue Retention (NRR) have long been foundational SaaS metrics, but what happens when pricing is no longer fixed? In a world of usage based, consumption based, and outcome based pricing, traditional ARR driven metrics start to break down.

Join Dave “CAC” Kellogg and Ray “Growth” Rike as they unpack how expansion and NRR should be interpreted in a variable pricing world, including:

• Why ARR no longer behaves like a stable forward looking metric under variable pricing

• How “implied ARR” works, and when quarterly versus monthly proxies lead to very different conclusions

• Why longer measurement periods help dampen volatility and seasonality in expansion and NRR

• Common mistakes teams make when applying traditional NRR and GRR formulas to usage based businesses

• Why usage and sequential change often matter more than year over year metrics for operators

As pricing models evolve, CAC and Growth challenge the idea of forcing old SaaS metrics to fit new realities, and explore how operators and investors should rethink expansion, retention, and customer growth in a variable pricing world.