Monthly Billing Based on Usage – No Commitment Revenue Recognition: Under a model with monthly billing and no commitment, the customer is invoiced monthly based on usage with no committed payments other than the usage. The customer can stop using the product at any time and no payments would be due to Teleport for the cancellation. Revenue under this model would be recognized monthly as invoiced for both on premise license and SaaS products. Since there is no commitment, the contract would be an agreement that renews monthly. There would be no deferral any revenue to future periods since there is no obligation for continued service.

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