Recurring revenue is 40% of turnover. A quarter of it is contracted.

Repeat revenue and recurring revenue are treated as the same line in most management accounts. Buyers, lenders and forecasts all discover the difference at the worst moment.

By Steve 5 min read
Abstract bridge artwork for Recurring revenue is 40% of turnover. A quarter of it is contracted.

Most management packs have a line called recurring revenue. Interrogate it and it usually turns out to be four different things stacked together: revenue a customer is contractually obliged to pay, revenue a customer will pay by default unless they act, revenue a customer chooses to give you again because last time went well, and revenue that simply happened twice. All four repeat. Only one of them is a commitment. The distinction is easy to ignore while volumes hold up, because in a stable year every category behaves identically. It…

Keep reading for free

Create an account to read the rest.

The whole library is free. No card, no subscription, no trial that quietly ends. An account simply lets us know who we are writing for, and opens every article from here on.

  • Every article, in full, at no cost
  • New articles published every weekday
  • Takes about twenty seconds
Create a free account I already have one

Free means free. We will not charge you for the library, and you can read as much of it as you like.

Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

More on Market analysis

Scroll to Top