Category: Usage Based Pricing

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What “Forecast Accuracy” Actually Means in Usage-Based Businesses

In traditional subscription SaaS, forecast accuracy had a relatively clear definition: How close were we to the number? But usage-based businesses don’t operate on stable subscription physics. In 2026, revenue is driven by adoption patterns, workload variability, and customer behavior. It ramps unevenly. It spikes. It normalizes. And in many cases, it’s “earned” after the contract is signed. So for Revenue Operations teams supporting usage-based revenue models, there’s a real question hiding underneath the reporting: What does forecast accuracy actually mean?

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Forecasting for Usage-Based AI Companies

Usage-based pricing didn’t appear as a trend. It showed up as a response to how these businesses actually operate.As AI-driven products moved from experimentation to production, the subscription models that once worked for SaaS began to fracture. Revenue became tied to tokens, minutes, inference calls, credits drawn down, and compute consumed. Growth accelerated, but predictability suffered.