New predictions, page-42

Growth definitely looks like it’s slowed a bit, but I think it’s worth remembering — in previous years, LVT added substantial amounts of ARR through their hyper growth acquisition strategy with Wizdom and CYCL.

Some of LVT’s peers (BTH, DUB) have significantly increased their ARR numbers this year through the same approach. LVT haven’t acquired any additional businesses this year, so all ARR growth is organic.

Also LVT terminated their N3 sales partnership this time last year, which resulted in a $4.4m reduction in ARR. This was a cost cutting exercise back when the covid lockdowns first hit. Had LVT kept the partnership in tact, the ARR number would likely be $4.4m higher today (though operating expenses would also be a few million higher too). It also means LVT were starting from scratch in building their sales pipeline. It’s only been a year since they started bringing sales in house.

Taking these things into account and with one more quarter to go, I think it’s a bit hard to say if LVT’s growth has truely stalled or if it’s just a small blip on the chart due to various circumstances.