Recurring Revenue

What is 'Recurring Revenue'

Recurring revenue is the portion of a company's revenue that is highly likely to continue in the future. This is revenue that is predictable, stable and can be counted on in the future with a high degree of certainty.

BREAKING DOWN 'Recurring Revenue'

For example, a cable company that has millions of customers paying monthly could consider a large portion of its monthly revenues to be recurring in nature. Many market pundits consider recurring revenue to be a highly desirable quality for a company to have.

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RELATED FAQS
  1. How do companies calculate revenue?

    Revenue is the amount of money a company receives in exchange for its goods and services. The revenue received by a company ... Read Answer >>
  2. What is the difference between revenue and sales?

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  3. What is the difference between accrued revenue and unrealized revenue?

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  4. How is deferred revenue treated under accrual accounting?

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  5. Why do companies stop trying to increase marginal revenue?

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