RE:RE:RE:RE:Questions About QTRH Just a point of clarifitcation.
Recurring revenues are contract or subscription based sources of revenue that a company receives for software or services they provide to clients on an ongoing basis. For example, telecomm comopanies like BCE, RCI.B, and T have recurring revenue streams because, in addition to owning a cellphone, clients pay a fee every month for the wireless service the telecomm provides. Microsoft 365 is also now sold on a subscription basis to companies vs. the old days of one-time purchases companies used to make for loading "x" number of company PCs with Microsoft Office software.
Conersely, backlog is the amount of money QTRH expects to be paid for projects they have won but have yet to build. I suspect a high % of this money is the one-time sale of the physical products / infrastructure / labour neeed to get the systems up and running. Also, keep in mind backlog does not necessarily mean profitability. A company can have a backlog of projects in which input cost or delay issues arise such tha the company may make little to no profit on a given project. Not saying this will happen with QTRH projects, but in the end, it's the net profit the company makes on a given project that is the key figure, not the amount they are being paid to construct the project and get it up and running.
If QRTH had a high % of recurring revenues, I think they would have prominently stated this in their earnings PR. Instead, as suggested in the quotes from the MD&A I presented in my previous post, it appears one of QRTH's goals is to increase the % of revenue derived from recurring sources like service and maintenance contracts, so good to see they recognize that these higher margin sources of revenue are key.