VMK, I used your method (Cost per dollar of ARR generated) and got very close to what your numbers were but not exact. The other model will need to be a holiday task I think. Super impressive accuracy. Thanks for the help, I'm becoming more aware that it isn't about cashflow breakeven in the short term and more about scaling.
Based on this model, LVT will increase OpEx and get back an increase in ARR proportional to 1/COA. Thus, it is likely they will increase their negative operating cashflow (not including annual icense fees coming in), but generate ARR that will be far greater than the COA in the long run, ESPECIALLY given LVT have a very good retention rate (quoted in Dec17 4C as 135% - negative churn big time, which I expect would have decreased a bit due to scaling, but as you have pointed out they have very complemetary products and can scale with the pay per seat model).
LVT Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
