** they stopped reporting / breaking out one-time vs service revenue Q3-21. Unsure why.
** There's CrowdVision debt payments (acquisition costs) in op cash flow chart - but hard to know where this is being accounted. By the looks of the above, perhaps in "staff costs"?
Overall, revenues up nicely in a consistent manner - just not accelerating. Costs are a concern - but can't see at granular level what the drivers are. On the surface this is looking like a service business rather than a technology business (margins not improving with revenue growth). Which is ok, just different business model with different margins and therefore different valuation.
Also reflects on how they report pipeline and TCV. To hilly_sandman's comments above, I think pipeline includes renewals. Reflecting their Oohmedia heritage, billing is based on fixed term contracts that require negotiated renewal every X years. Contrast to true SAAS and ARR revenue which is subscriber based and where you can keep billing until they cancel (and doesn't require lots of high cost schmoozy selling and account management to keep the revenue). But what do I know. I'm a sideline spectator making guesses.
I'll continue to hold. I see this being a nice buy-out opportunity for a larger US VC backed player who will see SKF as a fast/cheap way to get some logos on their pitch deck.
