Recurring revenue on increasing number of sold units has got to be a major positve going forward.
https://www.intelligentinvestor.com.au/investment-news/cleanspace-right-place-right-time/149119
Historically, around 45% of revenue generated by a respirator sale is from consumables and services; for every $1,000 respirator the company sells, it can expect $100-200 more in each of the next 5-7 years. As the installed base of respirators grows, so too does the proportion of recurring earnings from consumables, repairs and accessories.
That's why 2020 was such a landmark year for the company - it encouraged rapid adoption of its respirators, which will continue to generate sales over several years.
CleanSpace's installed base of respirators has swelled to more than 70,000 across 1,000 different customers, with more than half being fitted over the past 12 months.
If the company does reach the $100m mark - double the current run rate - it's reasonable to assume CleanSpace would be earning 50% or more of revenue from consumables; gross margins might sit at 80% or so.
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