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Recurring Revenue
Definition
Revenue that is contractually expected to continue on a regular basis, such as subscriptions, maintenance contracts, or licensing fees. Recurring revenue is more predictable than one-time sales and is valued at higher multiples because it reduces risk and improves forecasting accuracy.
Related Terms
Real Options Analysis
Regulatory Capital
Relational Capital
Relief-from-Royalty Method
Replacement Cost Method
Related FAQ
What is customer relationship value and how is it measured?
Customer relationship value is the profit generated by customer relationships over their lifetime. It's measured via LTV (lifetime value) and is often the largest intangible asset for recurring revenue businesses.
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