Run the Numbers: Why Revenue Recognition Is the Next AI Battleground

Guest: Dan Miller, CFO at RightRev
Host: CJ Gustafson
Date: February 9, 2026

Episode Overview

In this episode, CJ Gustafson chats with Dan Miller, an experienced multi-stage CFO (currently at RightRev, previously at Fastly and NetSuite) about how revenue recognition is becoming an essential and complex battle—especially as AI and innovative business models sweep tech. The conversation covers topics from the evolution of revenue technology (“RevTech”), usage-based and hybrid revenue models, the practical realities of AI in finance, lease accounting’s underexplored relevance in tech, and the evolving role of the CFO in both sales and product development. Dan’s hands-on insights, humor, and real-world anecdotes make this a valuable playbook for aspiring and practicing finance leaders in tech.

Key Discussion Points & Insights

1. The Rise of RevTech and Revenue Recognition's Centrality

• RevTech is a newly coined term (by Dan and team) capturing a category that zooms in specifically on revenue automation, sitting alongside but distinct from billing, CPQ, and RevOps.

  • “Where the pain that we see every day is that they really aren’t ready for the revenue piece…I think that’s why we think this RevTech term is very interesting.” (Dan, 25:17)

• Why now?: The increasing complexity of business models (subscriptions, usage, outcomes, bundling hardware/software/services) is exposing the limits of legacy finance tech.

  • “Revenue was kind of the poor stepchild…revenue is the driver.” (Dan, 24:23)

Timestamps:

• [00:09–00:44] RevTech origin
• [24:06–25:17] RevTech explained and why a new category is needed

2. Durable vs Hypergrowth: Navigating Modern Company Lifecycles

• Durable growth is about sticking power: retaining customers amid fast innovation cycles, not just chasing “hypergrowth.”

  • “Predictable and durable growth…I think comes with that switching cost and your ability to retain those customers.” (Dan, 04:26)
  • The pace of innovation (especially on the AI front) means customers are always evaluating newer, sometimes better solutions.

• Customer Success is an “all-org” effort: The Snowflake example is referenced as a modern commitment-based business model that integrates CS into the business rhythm, not just a periodic task.

Timestamps:

• [04:08–06:02] Durable growth, switching costs, and customer retention
• [07:29–08:07] Snowflake’s evolution as a model for durable growth

3. The Consumption & Commitment-based Revenue Era

• Shift from pure subscription to usage/consumption-based models: Both traditional SaaS and startups are experimenting with hybrid models—forecasting becomes more complex, allocations more dynamic.

  • “Dynamic discounting and allocations changing each period…not ‘set it and forget it’…that use case was not prevalent three years ago…now in almost every prospect.” (Dan, 06:06)

• Forecasting got harder: Layered allocations impact not just revenue recognized, but also gross margin scenarios—a need that RightRev aims to solve.

  • “Now you’re not only just forecasting consumption, you’re forecasting the change in those allocations and why that’s important…because you’re shifting among higher or lower gross margin elements.” (Dan, 08:07)

• Commitment games in early AI software: Some AI SaaS companies inflate ARR by annualizing small pilots, even paying commissions on bookings that haven’t realized usage—sparking discussions about best practices and sales comp design challenges.

  • “There are a lot of these new age AI companies…they’re selling a three-month pilot at like a pretty small cost…multiplying it by four and saying ‘we got $12,000 in ARR’…” (CJ, 15:41)
  • “It’s a really tricky situation…those situations and use cases are very challenging.” (Dan, 16:08)

Timestamps:

• [06:06–10:32] Snowflake and the evolution to dynamic consumption
• [15:41–17:50] AI “commits,” sales compensation complexity

4. Where AI Actually Matters in Finance

• Reality Check: AI is mostly assisting with “hygiene” (data syncs, reconciliations, error reduction) and light productivity boosts (e.g., auto-mapping new SKUs’ rev rec logic), not automating judgment-heavy rev rec.

  • “We don’t see a world—I’ll be extreme—where an order comes in and revenue spits out the back because agents are doing it…what we do see is a lot around hygiene stuff and data synchronization.” (Dan, 29:59)

• Why rules-based (“deterministic”) logic is still king in revenue recognition: Auditors and the finance stack demand reproducible outputs, not probabilistic AI guesses.

  • “Revenue recognition is rules based…using an agentic approach—which is by definition probabilistic—it’s really not going to fly with auditors…So the deterministic approach … is here to stay…” (Dan, 31:55)

• AI market FOMO: Most large customers don’t really want “AI” running their mission-critical processes yet—security and auditability are still blocking widespread AI adoption in rev rec.

Timestamps:

• [29:59–32:47] Where AI adds value (data hygiene, productivity, not judgment)
• [31:55–33:05] Deterministic vs probabilistic in rev rec

5. Leasing in Software: Underexplored Monetization Path

• ASC 842 Lease Accounting + ASC 606 Revenue Models: RightRev’s new product links the two, enabling blended models (hardware/software/services bundles).

  • “I start to think about why isn’t the lease structure used in software more often…helping companies pay more over time, but actually then allowing vendors…to sell more stuff using that lease approach.” (Dan, 19:19)

• Could become more popular: As hardware/software offerings blend and buyers seek flexibility, leasing may emerge as a SaaS alternative.

  • “If lease ends up being somebody that helps you sell more software, why wouldn’t you do it?” (Dan, 20:04)

Timestamps:

• [18:02–20:47] Lease accounting in software—history, basics, and new implications

6. The CFO’s Expanding Sales Role

• CFOs, especially at companies selling to CFOs, have a very hands-on role in the sales process: credibility-builder, deal-structurer, and ultimate customer champion.

  • “It is unique because we are selling to the office of the CFO, and those situations are unique...you are very much in front of the customer.” (Dan, 20:58)

• Concrete ways CFOs help sales (not just approving terms):

  • Lending credibility in high-value deals
  • Partnering on deal structure for monetization innovation
  • Demonstrating the strategic importance of difficult customers

• Advice for non-‘Office of the CFO’ SaaS: CFO’s presence—even just for a few words in crucial meetings—signals commitment and helps win trust.

Timestamps:

• [20:47–23:56] What CFOs bring to sales calls—practical advice

7. Navigating FOMO, Funding Frenzies, and Enduring Career Advice

• Don’t chase shiny objects if your fundamentals are strong: A solid product, mentor, and career growth matter more than hype (including AI).

  • “If you’ve got a good mentor and a good boss and you’re learning a lot…rotate towards the good mentor and a happy life.” (Dan, 41:15)

• Scarcity and efficient growth are good disciplines: Not all companies need to—or can—hypergrow. Durable, smart growth is underappreciated but often more sustainable.

  • “Scarcity can be a good thing because it makes it so you don’t fund the B and C projects.” (CJ, 35:13)
  • “There’s just going to be a ton of consolidation and failure…those products can’t be as mature as NetSuite.” (Dan, 35:33)

• Personal lessons: Never underestimate the value of a good mentor—many of Dan’s big breaks stemmed from key sponsors/advisors.

Timestamps:

• [35:13–38:17] AI funding, durable growth, and career cycles
• [41:15–42:25] Enduring advice on career decisions and mentors

Notable Quotes & Moments

• On the crazy pace of innovation:
  “If you’re a company…am I going to buy this thing, and it’s going to be—not obsolete—but not the best thing in a month?” (Dan, 04:26)

• On revenue as the “stepchild”:
  “Billing was the thing and CPQ were the thing. Revenue was kind of the poor stepchild. Revenue is the driver.” (Dan, 24:23)

• On CFOs in sales meetings:
  “I probably in an hour call, maybe talk for two minutes. They’re very important two minutes, I believe.” (Dan, 23:56)

• On AI in revenue processes:
  “We don’t see a world… where revenue just spits out the back because agents are doing it. What we do see is hygiene, data, and synchronization of these systems.” (Dan, 29:59)

• On being a career-long learner:
  “Don’t just stay in the back office…understand how a business works.” (Dan, 42:25)

• On what to prioritize in your career:
  “Get the good mentors…treat them right, make them look good and really latch onto them…” (Dan, 44:28)

Timestamps of Key Segments

• [00:09–00:44] The birth of RevTech
• [04:08–06:02] Durable growth and switching costs
• [06:06–10:32] Snowflake: Commitment-based/consumption models, forecasting
• [15:41–17:50] Pilot ARR games, sales comp challenges
• [18:02–20:47] Leasing and the new ASC 842/606 stack
• [20:47–23:56] CFO as a sales asset
• [24:06–25:17] RevTech as a new tech category
• [29:59–32:47] Where AI fits (and doesn’t) in revenue processes
• [35:13–38:17] AI startup funding cycles and realism
• [41:15–42:25] Career advice: Stay the course with great mentors

Overall Tone & Takeaways

The conversation is candid, practical, and occasionally wry, shaped by Dan’s substantial experience and CJ’s incisive, pragmatic questions. Their back-and-forth is sprinkled with humor and grounded stories from the trenches, making technical subjects like revenue recognition and AI approachable.

This episode is a must-listen for finance leaders at SaaS and tech companies who want to stay ahead of the curve in revenue operations, technology trends, and leadership strategy—but don’t want to lose sight of the fundamentals that drive long-term business success.