Ann: FINEOS 1H23 Results Presentation, page-6

Some extracts from morningstar

revenue was down by 6%. And contrary to our expectations, margin expansion was nonexistent, as all expense lines grew more than revenue over the 12 months to December 2022.

the revenue drop was due to a client transitioning away from paying lump-sum services revenue, instead opting to pay for services via recurring subscription revenue. In other words, cash receipts are extended over time, but not lost.Underlying trends are encouraging, which supports our conviction that earnings recovery is underway.

Customers appear to be buying more products over time, as shown by ongoing growth in subscription revenue per customer, which led to an 18% growth in overall subscription revenue versus the prior half.

We understand none of the subscription revenue increases were from the large client, which is encouraging as it is indicative of growing switching costs among other existing clients