Subscription management and billing platform Recurly has agreed to buy revenue recognition and forecasting solution LeapRev, which will make a single source for customers in need of subscription management, recurring billing and revenue management, a press release said Tuesday (Sept. 27).
Revenue recognition reporting requirements have been changing, and now need international payments and multicurrency inclusion. By buying LeapRev, Recurly will improve its revenue reporting processes. Customers will be able to streamline revenue management across various monetization and pricing models, and account for contract modifications.
“Recurly powers recurring billing management for many of the world’s leading brands. Part of our customers’ success has resulted from Recurly’s ability to support more granular, pay-as-you-go pricing models. This trend toward enabling greater flexibility in pricing models creates a greater need for accounting automation,” said Dan Burkhart, CEO and co-founder at Recurly.
Last year, PYMNTS wrote about the rise of subscription-based businesses, with Twitter making headlines at the time for acquiring the Revue newsletter platform.
Twitter’s move into subscriptions occurs as the social media giant looks to hold onto revenue gains.
Big newspapers like the Washington Post and The New York Times were also doing well with digital subscriptions, which now make up much of their main revenues.
Recurly Senior Vice President Danielle Gotkis told PYMNTS around the time of the report that subscription services would have to fulfill specific needs, which are changing over time.
“Subscribers must gain value from their subscriptions in order to stay engaged and loyal,” she said. “It’s also paramount to give subscribers the ability to pay with their preferred payment method, no matter where they are located. And if a subscriber hits a bump in the road due to finances or another issue, offering the ability to pause a subscription, instead of canceling it, can reduce churn.”