Ann: Sales update, page-52

From the list in this sales update. The ones marked in red below are previous Odotech customers. Most public entities had detailed reports for funding of software or environment issues. Fun fact: Morning Star was forced into odour monitory by the county due to smell complaints. So its seems a lot of the wins are in fact up-selling/forcing Odotech customers into subscription models.



Whilst the discussion of $1.5m + $4.5m of EVS and Odotech is not that simplistic and guarantees they hit $6m ARR (obvious given there seems to be regular news customer wins), the cynic in me would say that they could be charge Odotech customers a subscription rate equal that of a software/hardware combo sold by Odotech previously. Conversely they could not be.

What is clear is that a lot of the ARR growth is coming from converting/retaining the Odotech client list they bought as much as legit new wins. Also not clear if there former Odtech customers are just picking up a subscription for the odour software or expanding the use to the broader suite. To me, this reduces the perceived quality of the sales growth and although they should easily hit the FY19 target, it raises more uncertainty on how easily they can meet the long-term term ARR growth targets.

This is the same sort of reporting TNE does to describe its growth in its cloud business where almost all the "new cloud" customers are just existing customers moving across.