Since I am not a really high-rated player I do not expect many (if any) people to read my blog, but in case anyone does, I have a question.

 

I am new to stock investing and recently a fellow CAPS player noted my ignorance in one of my under-perform pitches:

 

"You obviously dont know how to read the financials for a deferred revenue model company. And you wouldn't be the first, since they are hard to understand. However, company is hitting on all cylinders and the share price is going higher."

 

I appreciate such feedback, since not only did I not know the company was using a Deferred Revenue Model, but I do not know what a Deferred Revenue Model is.

 

Does anyone have a good explanation or resource for what a "deferred revenue model" is and how to interpret financial statements for such a model? I do not want to repeat this mistake.