Bigtincan Holdings Limited

ASX:BTH
Deleted on 2025-04-30 00:30:03

Bigtincan Holdings Limited

ASX:BTH
Deleted on 2025-04-30 00:30:03
$0.220 (+2.3%)
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Forum Topics BTH BTH Bigtincan Holdings Ltd General Discussion
Typhoon
Added 6 years ago

As per 27th November presentation Monthly Recurring Revenue (MRR) retention is 87% implying annual recurring revenue retention of 18.8% (87%^12).

BTH define LTV as (ARR*Gross Profit Margin)/(1-MRR retention rate)

($23.4m * 88%)/(1-87%) = $158.4m

Surely the annualised recurring revenue retention rate should be used which significantly reduces the LTV:

($23.4m * 88%)/(1-18.8%) = $25.4m

What am I missing?

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Strawman
Added 6 years ago

Finding it hard to fault your thinking there @Typhoon. Seems wrong to use annualised recurring revenue on one hand, but a monthly retention rate on the other. Seems dodgy.. Anyone else have an insight here?

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Strawman
Added 6 years ago

Actually, slide 5 of the Annual results preso (https://www.asx.com.au/asxpdf/20190829/pdf/447zqt7bdl892n.pdf) defines MRR. Still, very poorly defined and not a good measure of real LTV, which i'd suggest is more simply (and accurately) defined as (ARPC x Gross margin) / (1 - customer retention)

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