Revenue
One-Time Revenue stabilizes at $60M/Yr., Recurring Revenue continues to grow, surpassing it in the 6th year.
In this projection, One-Time Revenue (which is shown in blue and can be thought of as “new installation revenue”) stabilizes at $60 million a year because all 280 Resellers have been enrolled and have become fully productive.
However, Recurring Revenue (shown in green) continues to build as new installations are added each year. That’s because, on the PSaaS model, every dollar of installed hardware generates an average of 40 cents of recurring revenue every year.
As a result, in the sixth year, Recurring-Revenue surpasses One-Time Revenue and more than doubles the company’s (red-line) overall revenue performance.