E48: Deep Dive on Usage Based Models with Gladly's CFO Todd Rakow

Todd Rakow, CFO of Gladly joins CJ for this deep dive into usage-based revenue models, strategic finance leadership, and the complexities of managing growth and headcount in line with ARR. Todd shares tons of tactical insights, including building out the usage-based model, forecasting customer usage patterns, commissioning sales reps, and teaching your teams to distinguish between reoccurring and recurring revenue. If you're looking for an ERP head to NetSuite: https://netsuite.com/metrics and get a one-of-a-kind flexible financing program until April 15th, 2024. — PSA: Run The Numbers has a new Spotify and Apple show link. Follow the links to subscribe and ensure you'll never miss an episode Apple: https://podcasts.apple.com/us/podcast/run-the-numbers/id1723787140 Spotify: https://open.spotify.com/show/0zQCkklNnVgMD364kCW5SV — SPONSORS: Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year. NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ Now through April 15th NetSuite is offering a one-of-a-kind flexible financing program https://netsuite.com/metrics  Thoropass provides complete compliance management, continuous monitoring, and security audits through intuitive software and expert guidance – allowing you to do business with confidence. Learn more: https://bit.ly/Thoropass 🔒 Tropic is the next-generation Procurement Platform that’s helping modern CFOs take control of their budgets and bottom line. By combining approval workflows, supplier management, and pricing benchmarks all in one place, Tropic makes savings opportunities easy to find and act on. 🌴 Visit www.tropicapp.io/metrics to learn how. — FOLLOW US ON X: @cjgustafson222 (CJ) @turpentinemedia — TIMESTAMPS (00:00) Preview (01:11) Intro (02:31) Sponsor: Maxio | Netsuite (06:09) Usage Based Benchmarks: Here to Stay? (08:01) Understand ARR and its Components (10:30) Recurring or Reoccurring? (12:33) Computing Gladly's ARR  (18:13) Seasonality and Alternative Methods to Better Track Revenue (22:25) Sponsor: Thoropass (23:45) Commission Structures And Incentivizing Sales Reps (27:28) Avoiding Foot Faults in Usage-Based Models (28:57) Frameworks Used in Day-to-Day (31:36) Strategic Leadership, Customer Support and Success  (32:50) Being a CFO: A Series of Long Uncomfortable Conversations (36:12) Removing the Stigma Around CFOs (37:45) Todd's Insights on the Difference Between a Good and a Great CFO (40:07) Forging a Good Relationship with Your CEO (43:29) Long Ass Lightning Round: What Did Todd Mess Up in His Career? (45:37) What Would Todd Tell His Younger Self? (50:35) Todd’s Software Stack - Sponsored by Tropic (52:41) Craziest Expense Request (53:30) Wrap