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

In this episode of "Run the Numbers," CJ interviews Todd Rakow, CFO of Gladly, about usage-based revenue models. They discuss accurately calculating ARR, using net dollar retention to forecast customer usage, and structuring sales commissions. Todd shares insights from his "ARR guide," explaining the difference between reoccurring and recurring revenue, and provides real-world examples from Gladly, including how to navigate seasonality and over-usage. He also shares frameworks for partnering with the CEO, managing teams, and balancing being a serious CFO with enjoying the work. The conversation covers common pitfalls in usage-based models and strategies for avoiding them, as well as Todd's approach to customer support within the finance team and his views on the qualities that distinguish good CFOs from great ones.