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Posted On: 11/08/2019 12:20:23 PM
Post# of 32973
"The November 11, 2019 CEO Video Update will include specific information, not reflected in the Company’s forthcoming earnings report, about the number of new enterprise client contracts the Company executed in the third quarter, the estimated economic value of those contracts, and a comparison of third quarter 2019 contract volume and corresponding value against prior quarters."
I read 3 things Rory will update shareholders on and you don't have long to wait:
1.) The number of new enterprise client contracts the Company executed in the third quarter
2.) Estimated economic value of those contracts
3.) A comparison of third quarter 2019 contract volume and corresponding value against prior quarters
Because of the SaaS accounting method, all these contracts VERB signed in Q2 & Q3 will show only partial MRR, plus setup fees in the quarterly.
Even ones they signed in the last 5 weeks, you won't see a dime in Q3 because they signed them in Q3.
Because of accounting rules, you could wait a year to see how much
OR
They may show up as long-term liabilities (in a good way) because it's a contract (i.e. liability) VERB need to fulfill
OR
Rory can do a video and share that with you. Very few companies go out of their way to do that.
But when Rory shows it this way, new contract revenue will be up to 12 times greater than what is reflected in the Q for that portion as you might only be in month 1, month 11 or haven't even started billing.
Just to be clear, Q3 '20 won't be 12 times higher. That would be insane CAGR. The total revenue of the new contracts will be much higher than what is reflected in Q3.
We know you can't recognize SaaS revenue until it's earned in each month. So if a customer, say the one launching in China is doing so, let's say in December as an example. You wouldn't see that revenue until Jan.
The lag in revenue recognition is what makes investing in SaaS companies interesting. The company already knows how sales are going and the contracts that are signed. It's that lag, when companies are successfully growing, make the share price quickly rise. when they start to figure it out.
When you start seeing insiders buy in a company, it takes on a whole new meaning within a SaaS company has they are seeing revenue out further than most.
And here's the kicker. That revenue continues on. You don't have to sell another car, boat, or donut to keep it going each week.
I read 3 things Rory will update shareholders on and you don't have long to wait:
1.) The number of new enterprise client contracts the Company executed in the third quarter
2.) Estimated economic value of those contracts
3.) A comparison of third quarter 2019 contract volume and corresponding value against prior quarters
Because of the SaaS accounting method, all these contracts VERB signed in Q2 & Q3 will show only partial MRR, plus setup fees in the quarterly.
Even ones they signed in the last 5 weeks, you won't see a dime in Q3 because they signed them in Q3.
Because of accounting rules, you could wait a year to see how much
OR
They may show up as long-term liabilities (in a good way) because it's a contract (i.e. liability) VERB need to fulfill
OR
Rory can do a video and share that with you. Very few companies go out of their way to do that.
But when Rory shows it this way, new contract revenue will be up to 12 times greater than what is reflected in the Q for that portion as you might only be in month 1, month 11 or haven't even started billing.
Just to be clear, Q3 '20 won't be 12 times higher. That would be insane CAGR. The total revenue of the new contracts will be much higher than what is reflected in Q3.
We know you can't recognize SaaS revenue until it's earned in each month. So if a customer, say the one launching in China is doing so, let's say in December as an example. You wouldn't see that revenue until Jan.
The lag in revenue recognition is what makes investing in SaaS companies interesting. The company already knows how sales are going and the contracts that are signed. It's that lag, when companies are successfully growing, make the share price quickly rise. when they start to figure it out.
When you start seeing insiders buy in a company, it takes on a whole new meaning within a SaaS company has they are seeing revenue out further than most.
And here's the kicker. That revenue continues on. You don't have to sell another car, boat, or donut to keep it going each week.
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