EVS 3.70% 5.2¢ envirosuite limited

Ann: Quarterly sales update, page-38

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ANNOUNCEMENT SPONSORED BY PLUS500
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  1. 152 Posts.
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    I'm interested in this stock but I'm a bit confused about this "ARR" metric.
    I generally read ARR as "Annual Recurring Revenue". Money that, assuming no client attrition, will come in year after year. But they seem to use "ARR" to indicate "Annual Run Rate", which I understand is simply an extrapolation of all current year revenue growth to future years.
    Don't quite a few of their (currently all too infrequent and irregular for my liking) contract wins comprise a significant yet inconsistent component of one-off setup costs (i.e. non-recurring revenue)? If so, then it seems to me that Annual Run Rate is a dangerous and possibly misleading metric for a company of this size and with such irregular contract wins/values.
    Also, I get very wary when I see graphs like the one in the first page of this announcement, where the y-axis conveniently starts at a value other than zero, which makes the growth curve look artificially impressive at first glance.
    Thoughts?
 
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