Rowena Thanks for that detailed note, but I'm still struggling to understand where people are seeing the growth in the software side (in total) since last year.
TCV (if I've understood correctly) is merely the value of contracts sold during the period, but ARR gives a better reflection of annual revenues you can recognise. ARR of 12.7m at Jun2020 would imply that they would recognise that amount in FY2021 should they not sell any further subscriptions in the next 12 months (the TCV seems to indicate that the subscription term is ~3 years).
For FY2020, if we take the 6.9m in perpetual licence revenues + 9.3m in subscription revenues (I've calculated that based on Dec19 ARR of 10.7m * 6 mths, + 1H20 subscription revenue of 3.9m), which would imply a total revenues across those 2 lines revenues of 16.2m which is ~1.7m higher than FY2019 (~11%).
In addition, it seems like subscription revenue as you pointed out is a relatively small component of the business....the larger component seems to be maintenance, consulting and advisory....is there any expected uptick in that from the change in model?
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