EdgeTI Financials - what you need to know These items are not reflected in the financials
Over the past three years, EdgeTI has transitioned from perpetual sales to subscription sales. As expected during this conversion, there was a temporary decrease in revenue of 30% to 50%. However, 2022 marked the final year of this transition, and all customers will now pay annually to access and use the software. Furthermore, subscription prices will increase when adding additional users and utilizing newly released functionality.
There was no material churn last year. EdgeTI's product is highly sticky, making it difficult to retire after use. Churn typically only occurs if a public sector contract is not renewed. An example of this is when EdgeTI software managed the financial's for the Pentagon construction upgrade project. Once the project was complete, there was no further need for the software.
EdgeTI exceeded their sales bookings for Q1 '23 and is on track to achieve 40% sales growth this year, as per the corporate update released on March 16th, 2023