New Partner - interworks.cloud - Greece - 5500 resellers, page-34

I've heard recently that they may be situations where they look to negotiate their offerings slightly differently too, depending on the partner.

In that they may offer a lower ARPU to the partner but the partner take on/absorb the hosting costs for backups. So yes a lower ARPU but 100% gross margin in those situations. Ultimately it is the gross margin revenue that is hitting the bottom line. These may be where the partner can negotiate cheaper hosting costs due to their own scale? Not sure but would be a win win for each party.

This way of doing some deals may be somewhat corroborated by a few comments in the most recent investor presentation:

"ARR will be Dropsuite's key topline metric, as we expand/diversify commercial and deployment options."

This can be read as ARR growth rather than ARPU is the priority at the moment and different ways of acheiving it are being considered.

"Best in class gross margins of 78% in August steady YoY (with upward trajectory from September onwards).

Are improved margins expected due to possibly some of these 100% GP at lower ARPU deals having been done? Maybe.

Like you say, I think things are looking pretty positive.