#recurring-revenue

#recurring-revenue

Costco Wholesale Corp ( NASDAQ:COST) just reported something remarkable: a 92.3% renewal rate in the US and Canada, with 89.8% worldwide. That's not just a metric. It's the entire business model distilled into two numbers. Most retailers live and die by comparable sales or margin expansion. Costco's stickiness lives in membership renewal. When nine out of ten customers voluntarily write another check each year, you've built something Amazon.com Inc ( NASDAQ:AMZN) and Walmart Inc ( NYSE:WMT) can't easily replicate.

Despite how modern it seems to be, the truth is that the subscription economy has been around for some time, surprisingly dating back to around 1800, with the first magazine subscriptions, or the subscriptions for fresh British milk, around 1860. Over the years, the of subscription-based companies has turned the subscription model into an ideal business strategy since it provides unique benefits. In the same way, the adoption of this model across multiple industries has led to negative repercussions for the general public.

During the automaker's Tuesday earnings call, CEO Mary Barra highlighted the rapid growth of GM's in-vehicle software and subscription business. In the past nine months, GM's software generated $2 billion, and customers have already signed up for about $5 billion in future subscriptions. The company said it now has 11 million subscribers for its OnStar safety system, up 34% from a year earlier. Another half a million customers are also paying for Super Cruise, its hands-free driver-assistance system.

Artificial intelligence (AI) has become a major disruptive force, transforming businesses and reshaping our daily lives worldwide. Alphabet and Amazon are widely seen as key beneficiaries of this revolution. Alphabet (through Google Cloud and Workspace) and Amazon (through AWS) serve enterprise markets. Still, they are also heavily exposed to consumer-driven segments, such as digital advertising and e-commerce. On the other hand, Microsoft is more enterprise-centric, with a business model primarily based on seat-based subscriptions and long-term contracts.

A2Z Cust2Mate () Solutions announced a new milestone in its retail media journey through a advertising agreement with Toys "R" Us Israel and The Red Pirate, two leading toy retail chains. For the first time, these household names will connect directly with shoppers through Cust2Mate's smart carts-turning everyday grocery trips into interactive retail media experiences. The campaigns will run across up to 5,000 smart carts currently rolling out in Yochananof, delivering dynamic image, animation, and video ads designed to spark shopper engagement.

Providing web hosting can offer recurring revenue for freelancers while allowing them control over site performance and security; however, it comes with serious responsibilities.

To stay competitive and drive lasting impact, leading service providers are repositioning cybersecurity as a strategic business enabler, transitioning to ongoing management aligned with business goals.