Summary: We initiate MGI 360 Rating of Chargebee in the Automated Revenue Management (ARM) market with an initial score of 50 and a NEUTRAL Analyst Outlook. Chargebee entered the ARM market in 2021 with the acquisition of an early-stage innovator, RevLock. Chargebee’s RevLock solution has several product differentiators. RevLock handles proportional allocations typical of services (e.g., hours or credits), has an SSP library/analyzer, and can manage incentive sales compensation in tandem with revenue recognition. A standalone product uncoupled from the invoice tool, RevLock handles many classic use cases such as the contracted, but unbilled, revenue. The post-acquisition integration is still a work in progress, particularly from a product and technology perspective. Managing the merger of Chargebee’s sales and marketing machine with the capable, but relatively small, RevLock product team will be a key factor in the potential success of the solution going forward.
Ideal Use Case: B2B software company doing $10M – $50M in revenue with multiline, moderately complex agreements (subscriptions + services) and a contract-centric approach to revenue automation in North America.
Primary Competitors: FinancialForce, Chargify-SaaSOptics, JustOn, Oracle NetSuite, Sage Intacct, Zone & Co.