How Do SaaS Companies Perform in a Recession?, page-11

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13/04/20

09:57

Post #: 44013389
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Originally posted by Vmk Research: ↑

I suggested in another post that there would be 3 stages for LVT following on from CV19
Phase 1 : Surge in customers/leads from increase in remote working. I think the ARR numbers will understate how many customers adopted LVT because they are offering a lot their software solutions for free during the crisis but will eventually be great source of growth
Phase 2: Slowing SAAS sales across the industry due to decisions being paused as companies focus on restarting the business. LVT continues to grow but slower pace.
Phase 3. Secular growth returns because digitization and remote working will be top of restarted agendas.

I would really like to see LVT continue to focus on cash burn and cost so that they have fortress balance sheet ready for phase 3.

I am confident they can add at least $5-7 million over the next 2 quarters so if costs could be curtailed by $5-7m, they could be cash flow break even by end of calendar year which would be fantastic. They are only $15 m from cash flow break even per their presentation..

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@Vmk Research
"They are only $15 m from cash flow break even per their presentation."

Unfortunately they are quoting ARR and not revenue received. An old trick. In a series of posts a while back it was agreed that revenue trails ARR by at least 6 months. So it is very unlikely LVT will be cashflow breakeven this year. My guess is mid-2021

LVT Price at posting: 20.5¢ Sentiment: Hold Disclosure: Held
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