Ann: FY21 Q4 Conference Call, page-19

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01/08/21

19:22

Post #: 54942963
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Originally posted by badkerning: ↑

@ValueSearch

It depends on how each company recognises/receives revenue. If it’s upfront when contracts are signed or when services are implemented.

For LVT, I think we need to take into consideration the fact that the ARR numbers and cash receipts reported don’t fully reflect the sales of that quarter. It’s maybe more indicative of sales performance from the prior quarters given the time it takes for implementation and cash collection/revenue recognition.

Q4 is traditionally a strong sales quarter due to the end of the fiscal year. When contracts were smaller, it’s possible sales and implementation could have happened within the same quarter and FY. But if there’s been a shift to fewer but larger enterprises contracts, implementation/revenue recognition may push out to Q1, Q2 or Q3 the following year depending on its complexity and scale. We won’t know what real revenue growth there’s been from FY21 Q3/Q4 for several more quarters.

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I encourage you the learn the difference between cash received, revenue (and its recognition) and ARR. 3 different concepts.

When a client doesn't renew, cash, revenue and ARR stop at the same time.

LVT Price at posting: 14.5¢ Sentiment: Hold Disclosure: Held
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Ann: FY21 Q4 Conference Call, page-19

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