When the company’s new Controller joined, the revenue organization was running largely on spreadsheets. With a fast-growing, multi-dimensional revenue model spanning consumption credits, tiered pricing, enterprise licenses, marketplace sales, and complex credit-blending logic, the manual approach wasn’t just inefficient. It was a material risk.

• Manual revenue recognition in Excel, creating reconciliation bottlenecks and audit risk
• No automated handling of consumption-based credits, rollover grants, or blended rates acrossoverlapping credit purchases
• Enterprise license SKUs required splitting into License and PCS performance obligations, withdifferent allocation ratios for standard vs. premium SKUs (15/85 and 13/87)
• CSAT zero-dollar credit grants needed to be folded into blended rates automatically
• Tier-based pricing on consumption required real-time cumulative quantity tracking to derive thecorrect pricing tier
• Contract modifications (upsells and downsells) were handled manually with no systematicamendment logic
• Sell-through marketplace transactions added an additional layer of complexity

The company evaluated multiple vendors and was close to signing with a competitor beforeultimately choosing RightRev. The decision came down to RightRev’s deep configurability forcomplex consumption revenue models and its ability to handle nuanced requirements that off-the-shelf solutions couldn’t address. RightRev demonstrated the ability to handle:

• Consumption-based revenue metered through a third-party usage-billing platform with credit grant and rollover logic
• Blended credit-rate calculations across overlapping purchases
• Custom bundle explosion for enterprise SKUs into license and PCS performance obligations
• Tier-based pricing via custom transformation logic on cumulative quantities
• Tight native integration with NetSuite

RightRev was configured to address each of the company’s core revenue recognition scenarios with out-of-the-box capabilities.

Bundle explosion for enterprise licenses

Every enterprise license SKU is automatically split into two distinct performance obligations: Licenseand Post-Contract Customer Support. Standard SKUs are allocated at 15% License / 85% PCS, whilepremium SKUs follow a 13% / 87% split, so each element is recognized on its appropriate schedulewithout any manual intervention.

Credit grant & blended-rate engine

RightRev handles three distinct credit scenarios. Rollover credits ensure revenue is recognized in the correct period when a customer’s grant expires and credits carry forward. Blended credit rates automatically blend per-credit rates across overlapping purchases, so a customer buying 100 credits at$1.00 and another 100 at $0.80 recognizes revenue across all 200 credits at a blended $0.90. CSAT zero-dollar credits are absorbed into the existing balance, recalculating the blended rate across the full outstanding pool.

Tier-based pricing via custom transformation

For consumption customers on tiered pricing schedules, RightRev implemented a transformation layer that tracks cumulative usage quantities across order lines and re-derives the appropriate pricing tier dynamically. This eliminates manual tier calculations and ensures revenue reflects actual contracted rates.

NetSuite integration

RightRev integrates directly with NetSuite, the ERP, automating the flow of revenue data, journal entries, and reporting without manual reconciliation.

PARTNERSHIP  SPOTLIGHT

Real-time metering & billing integration

A key enabler was the tight integration between RightRev and the customer’s usage metering and billing platform, Metronome. That platform tracks every database credit consumed in real time, feeding the raw usage data into RightRev’s recognition engine. Rather than manually exporting and reconciling consumption data, metered usage events flow directly into RightRev, where credit balances, blended rates, and grant rollovers are automatically updated and revenue is recognized in the correct period. The integration eliminates the seam between billing and revenue recognition that had previously been a source of manual effort and reconciliation risk.

LOOKING  AHEAD

With RightRev in place, the company has the foundation to scale its revenue operations confidently, whether adding premium support offerings, expanding marketplace channels, or managing the increasing volume of enterprise contract modifications that come with a growing customer base. The team can now focus on strategic financial analysis rather than spreadsheet reconciliation.