Ann: Appendix 4C- strong ARR growth, cash receipts & cost control, page-20

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HonyakuKonyaku

662 Posts.

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30/01/20

10:57

Post #: 42639401
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Originally posted by ValueSearch: ↑

H... K.... first thing is to always DYOR. Create some spreadsheets. The company hasn't been helpful this Q on some items.

* ARR -> Cash - Cash collection now trails ARR by more than 1 year. This was not the case last Q. I can't figure out why there is such a lag especially when LVT keep saying that Livetiles doesn't require much deployment. The lag should only be 6 months at best per other posters. I have some ideas though will not share.

* Partner clients - LVT lost about 50 partner clients over the Q. They did not even mention this ! how many active partners there are. It is that bad. They had about 180 in prior Q. So they lost nearly a 1/3rd. This is a major setback. I drew adm1's and @vmk's attention to this in the last week or two. No one took the hint. It has the perverse effect of increasing the average sub. The longer term impact of this is that until the partner program is fixed there is not going to be free ARR growth coming from it. So all these estimates of 100m ARR by 6/21 due to partner growth are bunk. That said it highlights the strength of LVT in the enterprise market which is where the higher subs are. You probably twig now why they bought CYCL as it is an out of the box intranet probably better suited to the partner market. I suspect LVT knew all this was happening with the partners and had to target CYCL. Why else would you buy that 1 time revenue with ARR levered equity.

Afraid that is all i can offer in this forum. DYOR.

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Thanks for elaborating - much appreciated. There is a lot to digest in your post, so I'll need to go through it carefully and try and gain a better understanding of how the company is travelling. I also note that they've dropped the timeframe for 100mil ARR and now just say that it is a short term goal.

LVT Price at posting: 25.5¢ Sentiment: None Disclosure: Held
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0 Great analysis

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