This MGI 360 Rating™ is designed to help buyers, suppliers, and investors assess the product functionality, management teams, channel breadth, marketing strategy, and financial positioning of Chargebee‘s revenue recognition tool.
We update the MGI 360 rating of Chargebee in Automated Revenue Management (ARM) to 51 and maintain a NEUTRAL analyst outlook. In the last three years, Chargebee experienced a hypergrowth cycle, with total revenues crossing $100 million, followed by a shift towards profitability. The business has a current internal emphasis on increasing customer adoption and penetration across the installed base and building out the accounting central capability including functionalities that fully support AR subledger.
*This graph highlights how ARM vendors, including Chargebee, compare with one another across a combination of key factors. Chargebee’s go-to-market and solution strength are broken down in depth in the report. A fully labeled version of this graphic can be found inside the ARM Top 27: Buyer’s Guide.
Who Is Chargebee?
Launched as a billing engine, Chargebee today offers an integrated billing, rev rec, and receivables/retention management solution. Rev Rec is sold both standalone and integrated within the broader emerging suite. After a period of intense investment and growth followed by a retrenchment, the company is on a path towards profitability. About two thirds of its customers are B2B and nearly 20% are B2C-oriented.
What Is Automated Revenue Management?
Once viewed as an adjunct to the general ledger of an accounting application and considered a tool for managing revenue recognition schedules and compliance, automated revenue management (ARM) is now seen as a must-have component of the modern finance organization. Many companies were first motivated to investigate revenue recognition applications to enable compliance with the adoption of ASC 606 and IFRS 15 in 2018/19. Today, demand drivers for ARM expanded beyond the need for compliance into granular revenue management at a sub-ledger level with capabilities for analysis, reporting, and forecasting; a tool that finance and other teams can use not just at period-end, but daily. This report is the result of months of in-depth research that included hundreds of conversations with customers, accounting and audit partners, systems integrators, ARM vendors, and institutional investors.
ARM software solutions help automate accurate and timely classification, scheduling, allocation, calculation, and presentation of revenue in the appropriate periods and amounts within accordance of national and global accounting standards and other regulatory mandates. ARM is a key element of an agile monetization platform.
Since the publication of the last ARM Buyer’s Guide in 2022, the market for ARM solutions has blossomed – with standalone, billing-attached, and integrated financials suite vendors all bringing out new capabilities. Business models have evolved, with more attention on usage and consumption pricing models driving demand for faster, more agile revenue automation tooling. Buyers and sellers alike are becoming better educated, sophisticated, and mature. Market leaders are characterized by their novel approaches to not only supporting one-time and recurring revenue pricing models, but by their abilities to manage a diverse range of business models. And buyers are bringing more experience and higher expectations to the market.
What Are MGI 360 Ratings?
MGI 360 Ratings™ are a comprehensive structured system for evaluating technology companies. The MGI 360 scores reflect analyst opinions based on a scale of 0 to 100, combined with an analyst outlook (Positive, Negative, or Neutral). The 360 Rating system is comprised of 149 unique data points across five pillars:
- PRODUCT: How strong is the product’s competitive position?
- MANAGEMENT: How competent and experienced is the management team?
- CHANNELS: Does the company have a sales capability and channels needed to bring products to market?
- STRATEGY: Does the company have a realistic view of the opportunity and a compelling strategy for success?
- FINANCE: Is the company growing and profitable?
360 Ratings in Contract Lifecycle Management condense hours of research and customer references into simple, easy-to-understand ratings and recommendations to clearly demonstrate strengths, weaknesses, and differences among CLM software vendors. All 360 Ratings in Contract Lifecycle Management (CLM) are available in the ARM Top 27 Buyer’s Guide.
Get the report to find out how Chargebee compares to peer averages in the ARM market:
