SaaS & Subscriptions / Finance

Usage-Based / Consumption Revenue

Revenue that scales with how much a customer actually uses the product, API calls, gigabytes, compute-hours, rather than a fixed per-seat subscription fee.

The fork, why two teams get different numbers

The core dispute is whether consumption revenue is "recurring" at all.

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Reference: FASB ASC 606-10-55-18 (right-to-invoice / series practical expedient) · FASB ASC 606-10-32 (variable consideration) · SaaS operating-metric convention (no single standards body)