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.

RELATED TERMS
  1. Revenue Generating Unit - RGU

    An individual service subscriber who generates recurring revenue ...
  2. Revenue

    The amount of money that a company actually receives during a ...
  3. Recurring Billing

    When a merchant automatically charges a cardholder for specified ...
  4. Recurring Debt

    Any payment used to service a debt obligation that occurs on ...
  5. Marginal Revenue - MR

    The increase in revenue that results from the sale of one additional ...
  6. Revenue Recognition

    An accounting principle under generally accepted accounting principles ...
Related Articles
  1. Managing Wealth

    Revenue Analyst: Job Description & Average Salary

    Learn what a revenue analyst does and what skills are needed to succeed in the position. Determine the education and experience required to work in this field.
  2. Managing Wealth

    Revenue Analyst: Career Path & Qualifications

    Learn more about the duties of a revenue analyst and the qualifications needed for the position, along with the career path for these professionals.
  3. Investing

    What's Marginal Revenue?

    In microeconomics, marginal revenue is the additional revenue generated by increasing sales revenue by one unit. Another way of saying this is that the marginal revenue is the revenue generated ...
  4. Investing

    S&P 500 Index: A Revenue Case Study

    Discover the breakdown of aggregate total revenue of S&P 500 companies, including how much revenue is earned by country, industry and geographic location.
  5. Investing

    What does Deferred Revenue Mean?

    Deferred revenue is advanced payments received by a company for products or services that it has not yet rendered or shipped. Another term for deferred revenue is unearned revenue. Whereas normal ...
  6. Markets

    S&P 1500 Index: A Revenue Case Study

    Learn what comprises the S&P 1500 and how analysts use revenue trends to benchmark against the performance of a portfolio or single stock investment.
  7. Trading

    Stock Analysis Basics: How To Forecast Revenue and Growth

    Forecasted revenue and growth projections are important components of security analysis, leading to a stock’s future worth.
  8. Investing

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  9. Entrepreneurship & Small Business

    How Do Companies Calculate Revenue?

    Revenue is the money a company receives in exchange for its goods and services.
  10. Investing

    What Is The Difference Between Revenue And Income?

    The average person uses revenue and income in interchangeable ways. But these terms refer to very specific, and different, concepts.
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 types of revenue are taxable?

    Learn about all the various types of taxable corporate revenue and how different revenues are designated and differentiated ... Read Answer >>
  3. What is the relationship between marginal revenue and total revenue?

    Learn what total and marginal revenue are, how to calculate marginal revenue given total revenue, and how marginal and total ... Read Answer >>
  4. What is the difference between revenue and sales?

    Learn to distinguish between a company's revenue and its sales, and see why the distinction is important when analyzing a ... Read Answer >>
  5. What is the difference between accrued revenue and unrealized revenue?

    Understand if there are any differences between accrued revenue and unrealized revenue. Learn about unearned revenue and ... Read Answer >>
  6. What is the difference between earnings and revenue?

    Understand how a company makes revenue and how it makes earnings. Learn the difference between revenue and earnings and how ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center