Measuring our performance
Software Revenues exclude third-party product revenues. This is a KPI because it reflects the work we are doing, and the monies received over a period of time for that work. It is driven by new sales, renewals, and upsell/cross-sell to existing customers and includes licenses, hosting, support and maintenance, as well as one-off project work.
ARR is an important metric as it is an indicator of valuation of software companies. Investors value the certainty of knowing that there is revenue which will recur year after year from customers who derive benefit from Celebrus’ products.
Adjusted diluted EPS 7.74p
Adjusted diluted EPS is driven from the Adjusted profit before tax figure and indicates the adjusted profit per share to provide a like-for-like calculation of value creation per share per year.
The Dividend is a key metric, as many shareholders value the cash payment to them. This metric is one that is considered extensively by the Board and balanced against the need to invest surplus cash into growing the business.
Adjusted profit before tax £3.8m
Adjusted profit before tax is a key indicator because it approximates to the cash generation of the ongoing operations. It excludes non-cash items such as amortisation, foreign exchange gains/ losses, and share-base payment charges etc, as well as exceptional one-off costs.
ARR as % of software revenues 89%
ARR as a % total revenue indicates our progress to improve the quality of revenues by making a higher percentage of them recurring revenues. This includes converting existing customers from perpetual licenses to term licenses as well as adding new customers on a term license ARR basis.
Cash is a key metric as it provides assurance on our ability to invest to grow the business as well as make dividend payments to shareholders. It also provides comfort to customers from a vendor risk perspective.