Where One-Time Gross Margin is stable at 39%, overall Gross Margin continues to grow with Recurring Revenue.
The impact of Recurring Revenue is even greater on Gross Margin
PSaaS is very high margin business – especially when on-going development costs are expensed when incurred - as is the case in the BluBØX model.
The overall gross margin percentage (shown in red) trends ever closer to the green PSaaS margin every year. So no matter what happens to the blue hardware margins, BluBØX’s overall margin percentage continues to grow.
This is a very attractive proposition in a market which is being so strongly affected by hardware commoditization.
And, of course, Gross Margin drives profitability so PSaaS allows very high profitability.