Non-recurring revenue should be ~20% of total rev.

by

Sammy Abdullah

Of the 63 companies, on median and average, 83% and 79% of revenue is derived from subscriptions, which leaves a healthy minority of revenue represented by non-recurring streams (17% and 21%). Other revenue streams are diverse: Atlassian and Splunk derive a significant portion of revenue from maintenance, MobileIron derives a fair amount from perpetual licenses and support, and Shopify generates material revenue from merchant processing fees. Nearly half of Health Catalyst’s revenue is services, and I’d argue it’s one of the reasons they enjoy high retention.

sammy@blossomstreetventures.com