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BluINFO

PSaaS Revenue Multiplier

One-Time Revenue stabilizes at $60M/Yr., Recurring Revenue continues to grow, surpassing it in the 6th year.

Commentary

To concretely demonstrate the positive financial impact of PSaaS as a Revenue Multiplier, these curves show the BluBØX anticipated Revenue performance through 2020, and are extended 3 more years to provide a better picture of the performance of the PSaaS model:

Note that One-Time Revenue, which can be thought of as “new installation revenue”, stabilizes at $60 million a year when Resellers are no longer being added and those enrolled become fully productive.

Note however, that the Recurring Revenue continues to build as new installations are added year after year. That’s because the PSaaS model is additive and generates, on average, 40 cents of recurring revenue every year for every dollar of installed hardware. The more installations that are completed, the more that recurring revenue grows.

As a result, in the sixth year of the plan, the Recurring-Revenue element surpasses the Revenue-from-one-time sales.

The model more than doubles later years’ overall revenue performance when compared to what revenue would be if it were all generated under a traditional sale-of-hardware-only model.

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