LVT (as we know) provides certain metrics for its growth, such as growth in ARR for consecutive quarters (Annual Report page 5) and customer growth (AR p6) and Average ARR per customer (AR p6). These all show LVT in a favourable light.
However, the cost of achieving such growth is also important. LVT could - and should - add a metric along the lines of Dollar Cost per unit of ARR growth. It obviously has the data to do so and no doubt monitors such metrics itself.
I am at this stage comfortable with the performance of the company, but whether one is comfortable or has concerns, I believe it is incumbent upon LVT management to address this issue so that shareholders can monitor its performance too. This is especially the case when LVT has demonstrated its readiness to routinely access shareholders for funds, with the attendant consequence of retarding share price performance.
On page 2 of the Annual Report it states: "Already, N3’s dedicated 60-person team has generated over $15 million of sales opportunities since late May 2018. N3’s team is highly scalable and the partnership further strengthens LiveTiles’ relationship and alignment with Microsoft."
This sounds positive, however, it is not as clear as it should be. LVT should address the issue of the cost of customer and ARR growth with additional metrics, which as I say, it no doubt has at hand and monitors internally.
Finally on this point, LVT is bullish about its prospects and provides guidance for strong continued growth in fiscal year 2019. Therefore, there is no apparent reason why it should not provide metrics on the cost of growth.
LVT Price at posting:
52.5¢ Sentiment: Buy Disclosure: Held
