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