For information purposes only:1. ARR is an audited number,...

For information purposes only:

1. ARR is an audited number, signed off by the auditors. It represents the annualized value of all current subscription contracts. It will slightly understate future revenue because it does not include consulting fees and installation fees , which in Wizdom’s case are $1m+.

2. LVT’s ARR is net of churn. IE any customer that cancels their subscription is immediately removed from ARR.

3. Churn measures what is happening to the existing customer base excluding new customer wins. If a company has a churn of 5%, it means that every year 5% of customer seats are cancelled and the business has to find 5% new customers
just to stand still. LVT has NEGATIVE churn. Existing customers net add seats irrespective of winning new customers.

Hope that helps folks’ analysis.

Some may choose it as a metric to measure growth. Some may prefer to use other metrics. However, if you build a model based on prior year revenues and announced ARR, it is possible to forecast the next 2 quarters revenues with a high degree of accuracy .