<- Glossary
Sales

Non-recurring Revenue

Table of contents
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Final Thought
FAQs
related metrics
Net Revenue Retention (NRR)
Professional Services Revenue
Customer Lifetime Value (CLTV)
Monthly Recurring Revenue (MRR)
TL;DR
Non-recurring revenue refers to one-time or irregular income that doesn’t repeat monthly or annually — like setup fees, implementation services, training, or custom development. While it’s not part of MRR or ARR, non-recurring revenue can play a critical role in enterprise deal structures, improving cash flow, and covering onboarding or deployment costs. Sales teams need to understand it — but also avoid confusing it with long-term value.

What is Non-recurring Revenue?

Non-recurring revenue is any revenue that does not recur on a fixed, predictable schedule. It typically includes:

  • One-time setup or onboarding fees
  • Professional services (implementation, customization)
  • Training packages
  • Non-renewable licenses or support packages
  • Success-based or usage overage fees (if not contracted)

In contrast to subscription-based revenue (MRR/ARR), these revenues are booked once and not expected to continue unless resold.

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Why It Matters in B2B SaaS

  • It can influence deal structure. One-time fees help offset onboarding or custom work, especially in enterprise sales.
  • It may cover costs without lowering ARR. Teams can maintain ARR targets while recovering services margins through one-time line items.
  • It shows up in total revenue, not recurring revenue. For forecasting and quota planning, it's important to distinguish what’s repeatable and what’s not.
  • It’s not always bad. While recurring revenue is the goal, non-recurring revenue can improve cash flow and fund deeper implementation for complex customers.
  • It impacts Customer Lifetime Value (CLTV). If included, it can inflate CLTV — so it must be segmented clearly in sales reports.

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How to Measure Non-recurring Revenue

  1. Review all closed-won opportunities for non-recurring line items
  2. Pull associated fees, services, or one-time charges
  3. Ensure they are not included in your MRR/ARR calculations
  4. Sum up the total for the reporting period (monthly or quarterly)

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Best Practices

  • Segment non-recurring vs. recurring in your CRM or billing platform
  • Keep non-recurring revenue out of performance metrics like NRR, GRR, or CLTV unless specifically modeling total revenue
  • Train reps to sell value-based services, not as margin-fillers but as outcomes (e.g., “Faster Time to Value”)
  • Use in enterprise motions where customization or onboarding depth requires extra scope
  • Watch for overuse — if too much revenue is non-recurring, it may signal a weak recurring model
Final Thought
Quotes

Non-recurring revenue won’t power your valuation or compounding growth — but it can support your GTM strategy when used wisely. For sales pros in B2B SaaS, it’s key to understand how these line items fit into the deal, support implementation success, and set the stage for long-term renewals. Just make sure you don’t treat it as recurring — and that it never distracts from growing your MRR or ARR engine.

FAQs
Is non-recurring revenue bad?
Not necessarily. It’s fine when used for setup, training, or services — but shouldn’t be confused with sustainable revenue.
Does it count toward ARR or MRR?
No. Only recurring, contractually committed revenue counts toward those metrics.
Should AEs get quota credit for non-recurring revenue?
Some comp plans include it (at a lower multiplier). But most companies focus quota on recurring revenue only.
Can it boost cash flow?
Yes — especially in upfront enterprise deals where services are required.
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