Why SaaS Companies Are Switching to Consumption-Based Billing

In this episode of SaaS Business with Fexingo, Lucas and Luna explore why a growing number of SaaS companies are moving away from flat subscription fees toward consumption-based billing models. They break down the strategy behind Snowflake's usage-based pricing, examine how it impacts revenue predictability and customer retention, and discuss the infrastructure requirements for metering and invoicing at scale. The hosts also look at the risks—including revenue volatility and customer budget shocks—and how companies like Twilio and Datadog have navigated them. With real examples and data points, this episode offers a grounded look at one of the most significant shifts in SaaS monetization today. #ConsumptionBasedPricing #UsageBasedBilling #SaaS #Snowflake #Twilio #Datadog #RecurringRevenue #RevenueModel #SaaSRevenue #PricingStrategy #UnitEconomics #CloudInfrastructure #BusinessAndTechnology #FexingoBusiness #BusinessPodcast #RevenueOperations #CustomerRetention #RevenuePredictability Keep every episode free: buymeacoffee.com/fexingo