Definition · SaaS metrics
Recurring revenue
Recurring revenue is revenue a business can reasonably expect to continue at a predictable cadence, and how it differs from one-time and variable revenue. For recurring revenue, the useful boundary is whether the movement comes from customers, contracts, billing, cash timing, or recognition rules.
Also known as subscription revenue, predictable revenue
Why it matters
Understanding recurring revenue matters because revenue and customer metrics can change materially when teams mix contract, billing, cash, recognition, churn, or expansion logic. The definition protects the story from drifting. Pluvo separates recurring from one-time revenue at the source, so ARR and MRR are built on a consistent, auditable base.
In practice
Revenue example
Teams use recurring revenue when they need to separate customer, contract, billing, recognition, and cash effects. That prevents a revenue movement from being misread as growth, churn, expansion, or timing noise.
Pluvo example
Pluvo separates recurring from one-time revenue at the source, so ARR and MRR are built on a consistent, auditable base.
In practice, teams should define recurring revenue with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding recurring revenue matters because revenue and customer metrics can change materially when teams mix contract, billing, cash, recognition, churn, or expansion logic. The definition protects the story from drifting. Pluvo separates recurring from one-time revenue at the source, so ARR and MRR are built on a consistent, auditable base.
A strong workflow for recurring revenue separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo separates recurring from one-time revenue at the source, so ARR and MRR are built on a consistent, auditable base.
FAQ
What counts as recurring revenue?
Teams use recurring revenue when they agree on the source data, time period, owner, and decision it supports. Here, it covers revenue a business can reasonably expect to continue at a predictable cadence, and how it differs from one-time and variable revenue, so the term should be reviewed before it is used in reporting, planning, or operating decisions.
What is the difference between recurring and non-recurring revenue?
The boundary for recurring revenue differs from related terms by scope, source data, time period, and decision use. In this glossary, it covers revenue a business can reasonably expect to continue at a predictable cadence, and how it differs from one-time and variable revenue, so teams should compare those boundaries before using it in reporting or planning.