Opinion The problem with subscriptions is that they generate a lot of money that companies cannot immediately report as income. Think of it: you pay Autodesk $2,000 to use AutoCAD for one year. Autodesk earns $2,000, but then can report only one-quarter of it ($500) in its next quarterly report. The other $1,500 sit in a bank account and cannot be used. Then, in the next quarter, it can report another $500 and start spending it. And so on. What if there were clever ways to report more of it sooner? Autodesk “incentivized customers” to Accept multi-year upfront billing, typically... Read more →
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