I have a question on the customer churn.
In FY18, the company reported 520 active customers (defined as the customers which are billed in last 12 months). The company has continuously added 40-50 new logos every year since then. Why, then in Q3FY23, the company reports only 530 active customers?
If the customer base is sticky, why is the logo addition not reflecting in active customer numbers? Does this mean that older customers are no longer invoiced after sale and implementation? The normal practice I have seen is that the enterprise customers do enter into AMC/support contract with the product supplier after implementation for ongoing technical support/product support issues etc. So they should be invoiced at least once a year as per my basic understanding.
If the older customers do not contribute to the revenue, wouldn’t this become a treadmill situation where the company needs to keep acquiring new customers every year in order to keep growing the topline?
What am I missing?
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