Consider two companies: SubscriptionSoft, a software company that sells annual software licenses, and OneTimeGear, a company that sells outdoor equipment.

Which of the following best describes the key differences between the recurring revenue model of SubscriptionSoft and the transaction$-$based revenue model of OneTimeGear?

SubscriptionSoft's model relies solely on customer acquisition for revenue generation, whereas OneTimeGear benefits from both new and repeat purchases without dependence on customer retention.

SubscriptionSoft must focus exclusively on lowering operational costs to maintain profitability, while OneTimeGear can increase profits only by continuously expanding its customer base.

SubscriptionSoft recognizes all its revenue upfront at the start of each subscription period, whereas OneTimeGear spreads its revenue recognition over several years following each sale.

SubscriptionSoft's recurring revenue model ensures a stable and predictable cash flow due to the periodic renewal of subscriptions, while OneTimeGear's non$-$recurring model may experience fluctuating income based on one$-$off sales.