Eighty per cent of revenue is recurring. Every contract is 30 days’ notice.

Repeat revenue and recurring revenue are not the same thing, and the gap between them shows up at exactly the wrong moment.

By Steve 5 min read
Abstract bridge artwork for Eighty per cent of revenue is recurring. Every contract is 30 days’ notice.

A business describes most of its revenue as recurring. Monthly retainers, monthly invoices, customers who have been on the books for years. Then you read the contract: rolling monthly, cancellable on 30 days’ written notice, no minimum term after the first three months. The revenue is repeating. Whether it is recurring in any useful sense is a different question, and the answer matters most when someone else is doing the valuing: an acquirer, a lender, or a leadership team deciding how much fixed cost the base can safely carry. Recurring…

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