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Pelatro's mViva platform wins contract from Asian telecoms company
StockMarketWire.com
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Telecom customer engagement hub software specialist, Pelatro, has won a new contract by an Asian telecoms company for its mViva platform.
The unnamed client is part of a large global group that is an existing customer of Pelatro, for campaign management operations. The contract is recurring in nature and includes a variety of services as well as the product itself. Over the term of the contract lasting three years, revenue is expected to be between $1 million and $1.8 million, depending on the customer's take up of additional services which are currently under discussion.
Pelatro has been focused on transitioning its revenue model from license-based, one-time, revenue to recurring revenue contracts. This has been an ongoing process since January 2019, but momentum has been gathering and this transition is expected to be substantially completed by the end of 2020.
Its annual recurring run rate is expected to continue to grow and record a material increase by the end of 2020. The shift of revenue model has a short-term impact in the form of lower upfront revenue from licenses being replaced by more regular recurring revenue contracts recognised over several years. This short-term reduction in upfront revenue will yield a significant improvement in the quality and transparency of the group's revenue, as well as typically a greater overall economic return in future years.
At 9:45am: (LON:PTRO) Pelatro Plc share price was -2.75p at 36.5p
Story provided by StockMarketWire.com
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