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This report says that $1.35M of the reported ARR ($4.6M) at the...

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  1. 5 Posts.
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    This report says that $1.35M of the reported ARR ($4.6M) at the end of December is due to the conversion of Odotech clients . That implies the $1.35M also includes any conversions done before this half year. If we assume that the ARR generated in Latin America on Page 5 of the ARR by region in the 2018 Full Year accounts are conversions from Odotech it would seem at least 1/4 of last years $3M ARR (approx $750K) needs to be subtracted from the $1.35M to get this years amount. In which case the rate of new wins is considerably greater than your figures suggest.

    However, I agree it would be good to have even greater clarification of what was converted by the full year so we could make an accurate analysis of the current situation.

    Despite this, with the level of detail they have provided I don't think they are being deliberately evasive. I think the important take aways are this:

    They have converted 100% of the top 20 odotech clients by revenue.
    They have converted 90% of all the odotech clients that were under contracted maintenance.
    They should comfortably beat the target of 100% ARR increase.
    A lot of the salesforce have yet to, or have only recently got up to speed.
    The Odotech conversions will have taken up a lot of the time of the existing salesforce and would not have necessarily been 'nailed on' conversions, so still represents something of an achievement.
    As Just a Guy says, the network effect will start to kick in going forward with some very good reference sites to leverage from.

    I appreciate you putting forward a contrary case to the 'everything is rosy' though. Especially when it's done in an thought provoking and sensible manner.

 
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