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PSaaS Recurring Revenue(RR) Business Model

  • 7 Types of Recurring Revenue

  • Interlocking Recurring Revenue

  • High Quality / No Contract / Annual RR

  • < 1% Customer Attrition

  • 2x Company Growth

  • $0.25-$0.50/yr. per $1 Installed Equipment

  • 4 - 8x Margin > One Time Revenue Margin

  • > Margin Over Time

  • 15 - 20x > Company Valuation

Typical PSaaS Recurring Revenue

System Revenue Equipment RR Range
Small $10 K $5 K $1 - $3 K/Yr.
Medium $50 K $25 K $3 - $10 K/Yr.
Large $500 K $250 K $10 - $100 K/Yr.
Very Large $2 M $1 M $100 - $500 K/Yr.
Enterprise $10 M $5 M $0.5 - $2 M/Yr.
Global $50 M $25 M $2 - $10 M/Yr.

Notes

 

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