Recurring Revenue
What It Means
Recurring Revenue refers to sales that are expected to continue, on a predictable schedule, from existing customers.
Why It’s Important
Recurring Revenue is a “Holy Grail” for Buyers and investors. It is highly valued because it represents a stream of revenue that doesn’t have to be resold to continue creating value . The higher the proportion of a company’s revenue that is truly recurring, the more valuable that company becomes.
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