Nick Mehta

We actually published a report on our website of all the public SaaS companies in terms of net retention and also what their valuation multiple was.

The point was to show there's a big correlation between net retention and valuation.

But when you look at it, you should eyeball and think about the companies that are like you.

Shouldn't every basketball player that is starting on the court be LeBron James, right?

And the reality is some are born to be LeBron James, some aren't.

I would argue that there's some businesses that actually naturally lend themselves to utility-based pricing.

So if you're starting a company from scratch, I do think the companies that are utility-based, product-led growth, consumption-based pricing are the best businesses largely.

And by the way, I'm saying that Gainsight is not one of those.

I'm not, you know, and we have very good business, but definitely the outlier businesses mostly are in that sort of product-led growth, consumption-based pricing, et cetera.

But you have to sort of say, what are you, right?

If you're selling enterprise software that is like sold to the CHRO and it's like a three-year contract.

You're not going utility-based pricing anytime soon.

Don't even waste time on that.

That's just a total waste of time.

What you should figure out is how do you sell more modules to your customer, et cetera, right?

But if you're in the developer ecosystem selling platform technology, you have to be some kind of utility-based pricing, right?

Whether you're Twilio, Snowflake, et cetera, right?

And so it's more about what market are you in.

I think those markets, the kind of subscription SaaS and kind of consumption slash utility are actually just very different markets, right?

Totally.