Ann: Q2 ARR grows to $52.7 million, page-136

ARR growth rate plus profit margin (cash burn) currently does not exceed 40% for LVT.

LVT's FY19 ARR growth was 169% YoY.

What is LVT's profit margin? FY19 cash-burn was $42.8m. FY19 revenue was $18m. Therefore the profit margin is -238%.

Thus the "Rule of 40" comes out as -69% for FY19.

However, this is deceiving, it doesn't take into account the escalation of costs in FY19 to support the huge boost to ARR...

I think we will find the Rule of 40 begins improving from here on in...

T.E.P.