Pricing Performance Metrics

Everyone agrees usage-based pricing is the future of SaaS. But is it ACTUALLY delivering stronger performance? We dug into the 2025 Software Equity Group B2B SaaS report and layered in Monevate’s own pricing and segmentation data. Here’s what we found: 💡 Usage-based pricing is now more common than user-based (37 companies vs. 24 in the dataset). The shift is real. 📉 But the performance tells a more complicated story. Usage-based models show similar growth to user-based, but with significantly lower EBITDA margins. 🤔 However, valuation multiples for companies with each model are nearly identical. That disconnect suggests investor preference is inflating usage-based multiples beyond what fundamentals alone would justify. Does that mean usage-based pricing isn’t delivering? No—there’s a variant that is clearly a winner. 🔀 Hybrid pricing, combining elements of user-based AND usage-based models, is outperforming both. On ALL key performance metrics. ✔️ Higher growth. ✔️ Higher margins. ✔️ Higher valuation multiples. Often seen as “the best of both worlds,” hybrid pricing’s performance data suggests it might just be living up to that title. 👇  Seeing this in your own data or GTM shifts? Want the full findings? Drop a comment or DM me and I’ll send the full 10-slide deck + dataset. #SaaS #Pricing #HybridPricing #UsageBasedPricing #Valuation #SaaSGrowth #SaaSInvesting -- Hybrid pricing outperforms user- and usage-based models on growth, margin, AND valuation.

We investigated 100 pricing metrics across top SaaS categories. Here’s what we’re seeing 👇 AI & Machine Learning: Creative Output AND compute. → Think characters, videos, credits, and tokens. Developer Tools: Developer momentum. → Think build minutes, API calls, and deployments. Productivity & Collaboration: Seats — but with nuance. → Think usage tiers, activity triggers, and add-ons. Fintech & Payments: Flows, not users. → Think transaction volume, assets managed, or payment processed. E-Commerce & Retail: Tied to revenue creation. → Think orders processed or GMV. Infrastructure & Cloud: Granularity. → Think compute hours, data stored, or requests. Data & Analytics: The cost of insight. → Think queries, records processed, or rows analyzed. Content & Media: Time is truth. → Think minutes streamed, views, or downloads AI Infrastructure / Platforms: Inference itself. → Think Credits, tokens, or inferences. Instead of a PDF, we created a searchable database so you can filter by keyword and category and find inspiration in seconds. Link in the comments 👇

#Pricing ≠ price. Most companies track price. Very few track pricing performance and how much pricing actually moves the needle in revenue, profit, and growth. 😯 Here is a simple framework to measure pricing success and impact: 1️⃣ Price Level: • Price • Discount • Net price • Price vs spending capacity 2️⃣ Profitability: • Margin • Markup 3️⃣ Price Impact (vs price change): • Profit • Revenue • Quantity • Win rate 4️⃣ Pricing Execution: • Price realization • Price erosion • Price movement index 5️⃣ Price Dispersion across: • Geographies • Segments • Customers • Channels 6️⃣ Price Evolution: • Price change • Trends over time 7️⃣ Price Benchmarks: • Competitors • Market/Macro trends • WTP/ROI • Internal thresholds Pricing is not just a number. It is a performance engine for revenue and profit. Companies that measure pricing analytically unlock massive value. 🚀 What pricing metric does your company track the most? And which one should it track but doesn’t? Leave your thoughts in the comments. 💬 I'm George Boretos, founder of FutureUP. Follow me and FutureUP for more about #AI and #Pricing!

Net Revenue Retention is correlated to pricing model - but so what? Based upon data from 301 B2B SaaS companies here is what we found: 👉 Usage-Based Pricing as the primary pricing model results in the highest percentage of companies with > 120% NRR (33%) 😢 Traditional subscription pricing models result in the highest percentage of companies with < 100% NRR (48%) - traditional subscription pricing also results in the largest percent of companies (65%) with NRR in the 101% - 110% range 👉 Hybrid pricing models are used by 26% of companies with >120% NRR - while AT THE SAME TIME represent the companies with growth rates > 30% - 36% of companies growing faster than 30% use hybrid pricing with a subscription + usage elements 👉 Pricing strategy plays a pivotal role in shaping how SaaS companies grow - pricing should not be a "side-project" 💡 make pricing a strategic, cross-functional program...maybe even consider investing early in a pricing leader that does not also own a function ⚠ Do not use a "set it and forget it" model - continuously evaluate and experiment with pricing models - especially in early stage companies or with new product introductions or new target segments 🤯 Google experimented with many different pricing models early in their life cycle - seems to have worked out 🌟 Align pricing model to your top financial metrics and business strategy - Reduced customer acquisition friction says Usage-Based - Early stage monetization and revenue growth says subscription - Growth stage suggests a hybrid pricing model to maximize growth - Higher NRR says use pure Usage-Based pricing 🦉 I am not a pricing expert - but the recent benchmarking research highlights that pricing model has direct impact on multiple, yet different performance metrics 🚧 Having the ability to deploy, bill, report and manage performance metrics that are highly correlated to pricing model requires more investment in pricing strategy and billing infrastructure than ever before #b2bsaas #benchmarks #metrics