April Roadshow Presentation, page-10

Just to clarify, if one invoices for , say a 3 yr contract, you get paid up front, however, if you bill monthly you get paid monthly.

In a nutshell, with a recurring revenue model, everyone is a winner, the quality of the earnings are better, and the customer is not lumped with a huge bill at the beginning and can smooth their cashflow.

This isn't uncommon for new companies, since they need cash upfront, but as they grow, the cashflow becomes positive and they don't need to charge upfront anymore.