Microsoft, Sales force and adobe are much closer comparisons to livetiles than cable TV.
The fact we are even discussing if bundling works is ridiculous. Bundling is used throughout the business world to increase profits. Upselling and cross selling allows businesses to spend more upfront knowing that the lifetime value of each customer is higher.
With enterprise software, livetiles products are all very complementary. Wizdom adds to the core livetiles product with a number of smaller, more specific tools. Hyperfish adds to livetiles and livetiles intelligence (AI) because it helps to clean the workplace repository to ensure all data is up to date. Livetiles intelligence is very clearly an upsell for the core livetiles product, bringing predictive power and user analytics.
Still don't believe a word we're saying? Remember that the overall average revenue per customer is $45k/year with a positive net retention rate. Remember also that more recently, average customer value has been significantly higher as management claim they are bundling the products well. Just divide increase in arr with number of new customers as magwheels did and you get figures between $80k-140k. I think the numbers back up the fact that livetiles products are complementary. Convincing customers to pay 100k per year instead of 50k per year is a very big jump.
Much like convincing you to pay $55/month instead of $50/month to watch extra channels.... Not
LVT Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
