Announcement Update on Total Contracted Value (TCV) derived from Software Subscriptions 11 March 2020 RPMGlobal Holdings Limited (ASX: RUL) [RPM ®] is pleased to provide the following update on the Total Contracted Value (TCV) derived from its software subscriptions. The Company’s TCV is now $25.4M an increase of $3.9M from RPM’s previous announcement on 20 February 2020. As at the date of this announcement, RPM’s Annual Recurring Revenue (ARR) from software subscriptions is now AUD$11.4m per annum. As per its 22 January announcement the Company’s next market update specifically relating to TCV and ARR will occur when the Company’s TCV number is greater than $30M.

Forager bought a chunk of these a couple of days back (see my earlier post)

I bought in October for 79.5c (along with PPH for $3.03 - both following recommendations from Owen Raskiewicz)  for my children (both under 5) with the intent of keeping until they are 18. Interesting times ahead! 

Forager Fund (FOR) increases its stake in RPMGLOBAL HOLDINGS LIMITED (RUL) from 12,299,223 shares (5.64%) to  14,679,404 (6.70%)

A few years of high software development spending and a push into subscription software is paying off for RPM. By late November recurring subscription revenue had doubled from June and reached $8m. In late January, having signed new contracts worth another $7m, annual recurring revenue rose to $10m. TOP 5 HOLDINGS (as % of NAV) Macmahon Holdings Limited (ASX:MAH) 9.7% RPMGlobal Holdings Limited (ASX:RUL) 9.3% Thorn Group Limited (ASX:TGA) 7.0% CSG Limited (ASX:CSV) 7.0% Enero Group Limited (ASX:EGG) 6.8% Cash 6.7% This is only one source of the high quality recurring revenue that the company produces. Maintenance revenue for software sold on perpetual licenses was $22m last year. And unlike many growing software companies, RPM is generating cash. About 5% of the current market cap (after adjusting for cash holdings) will be generated in free cash flow this year.

https://www.youtube.com/watch?v=cjh1nOELVO4&t=0s&mkt_tok=eyJpIjoiTldZMFkyUmtNMlZqTUdKaCIsInQiOiJ5azN1bkMyRzdHZnRydHczNmJoZUVicEViVEFJUjVHYmRwbzRPWlNuUHBPQ3pcL3hvbFhGSW9ETG9pSDlmclRoSDBDNnVBQlR5VUxSeVNEd1BYM1hkc1VrcjJ1UkVvWkM5b2JTMHM1YWFSaHBVcE5VNXVmUGwxbnRVN2psbVJqeEkifQ%3D%3D