SaaS

SaaS stands for Software as a Service. It's a way of delivering software where, instead of buying a copy and installing it on your own computer or servers, you access the software over the internet, usually through a web browser. The company that built it hosts and maintains everything on its end, including the servers, updates and security.

Revenue is almost always recurring: customers pay a subscription for ongoing access rather than buying a copy once. For an investor, that recurring base makes future revenue more predictable than one time license sales, and a company that keeps its existing customers can grow by adding new ones and selling more to the ones it has.