Sphere 3D Corp. (ANY)

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Predictable Recurring Revenue

The ability to predict revenue to a high degree of certainty is golden for all businesses. With predictable recurring revenue, you know you can make payroll and when you can afford to invest in the business — all because you have customer contracts that will keep coming in month after month. This is a KPI that we see more and more partners focusing on.

Company Valuation

One of the most important benefits coming from cloud is the fact that companies that invest in the latest technologies, and especially those that have recurring revenue, will garner a higher company valuation from an acquiring company, a venture capitalist, or the stock market. Acquiring partners and M&A experts have told us that they may pay double or more for a company with recurring revenue versus traditional resale or services revenue. There is much more to company valuation than just this,
but predictable recurring revenue is a great path to a stronger valuation.