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Message: For Peter: recurring part of the leasing model

Hi Midtown,

On Stockhouse, I just posted my understanding of recurring revenue, under a leasing approach.

I'll repeat it here.  I don't know if I'm right, but it "feels" right.  :-)

Snowdrift

 

Recurring Revenue

Hi all,

Here's my understanding of recurring revenue.

Let's say a customer chooses a 5-year lease for 10 torches.  Pyro gets the full up-front payment from the leasing company.

When the 5 years are up, the customer is going to have to sign a new lease if he wants to keep his plant going.  A new lease for this customer means a new up-front payment for Pyro from the leasing company.

So with all these customers renewing their leases at various times, Pyro keeps getting up-front payments from the leasing company (companies).

That's my take.

Snowdrift
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