Investor question 10 of 50 · Revenue & growth
“How much of your revenue is recurring?”
Short answer: the investor is really asking how predictable is your revenue? Answer in three steps: (1) split recurring subscription from one-off fees; (2) give the share billed annually upfront; (3) explain how one-off fees support recurring revenue.
What they're really asking
How predictable is your revenue? Investors rarely care about the question on its own. They're testing whether you know your numbers cold, whether your assumptions are honest, and whether you can explain them simply.
How to answer, step by step
- Split recurring subscription from one-off fees.
- Give the share billed annually upfront.
- Explain how one-off fees support recurring revenue.
An example answer
About 95% is subscription. Onboarding fees are about $500 per new customer and cover setup costs.
Figures are from Loopdesk, the fictional SaaS company in our sample files. Swap in your own numbers and keep the structure.
The answer that loses trust
Avoid
Counting one-off services as ARR.
Where the proof lives
Before the meeting, find the number behind your answer. In our workbooks it lives in: Revenue Build - Revenue recognised. If you can open that tab and point to it, the follow-up question is easy.