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clock Created with Sketch. 30/10/21
08:26
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Originally posted by Brett M H:
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G'day again everyone!! Time to onboard the client - this probably takes a few months from time of commitment. Time to ramp up the clients spend to what was expected - also probably takes at least a few months. Negotiated Payment terms - with longer payment cycles from larger companies. The time then to actually get the money - as anyone in business can attest, getting money out of large organisations is sometimes pretty tricky. And the US have just had their summer holidays – when lots of staff go away. As a pretty decent sized long term shareholder of 3DP, I reached out to Ian today about this lag - which is the first time that I have both emailed & spoken to him. The ACV and cashflow “gap” is quite frustrating for 3DP management. It largely represents the difficulties the larger US customers (power utilities) have in dealing with their own internal procurement teams - ie they contractually commit to use the platform (which gives rise to an ACV outcome), and then have their own internal battle to actually get cash to us. That probably sounds unusual, and it was for 3DP management a couple of years ago, but they’ve now come to accept that the customer’s internal processes are sometimes archaic and take time. The September quarter is summer holidays in the US, and therefore it is also historically the worst time of year for 3DP to get paid as some procurement teams are out of office. Some large organisations currently pay annually. And there has also been instances where 3DP have been told by a large organisation that the payment is now going to have to go into the next budget year. He expects the numbers to catch up and compress in coming periods so this won’t continue to be such an issue moving forward.
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Excellent, thanks for posting. It’s great to hear Ian shared the frustrations on lag and certainly gives confidence that we will see that “catch-up”, which seems to be taking forever.
(20min delay)