Ann: Sales update, page-53

thanks for the research. Good to see most of the big wins over the last 3 months are new customers making up about 1mil of the 1.5mil ‘new’ arr. 

good to be cynical, but I think it’s a bit of a stretch to think that previous hardware revenue for odotech could be converted into saas platform annual recurring revenue. 

Imagine the conversation: 

evs: we’ve got this new real time platform that helps you get more info from the enoses you bought from odotech

customer: yep looks good, but we already paid for this support.

evs: sorry the company you bought the support from went under. But would you like to give us an extra 100k/year?

Customer: sorry we’ve already used our 5 year budget (500k) upfront on our spend with odotech for their hardware and software last year. 

Evs: we understand that’s tricky, but as you can see our software will actually save you money when integrated with your enoses. So how about we start it off at a 20% discount as a goodwill gesture for the first two years to entice you over? 

Customer: ok here’s 80k/year...

as the exercise demonstrates out of the 4.5mil odotech revenue, evs might be able to convert that into 500k (maybe a mil max) extra arr. 

but I think it’s the network effect which will be most important from these customer converts. 

But proof of this network effect is yet to occur but is essentially the big upside of this company imo. 
I’m also not sure how intensive it is from sales and support in terms of scalability which again will effect the upside here.