What it says
What this says
Current to 11 Oct 26Final board pack from the CFO, issued 17 Jan 2025. It reports contracted annual recurring revenue of £358,425, 11 customers and headcount of 21 at 31 Dec 2024, and lists what is not yet reported.
What it is: an internal board pack prepared by Bridget Kearsley, Chief Financial Officer, covering the quarter ended 31 Dec 2024. It is deliberately short and states three numbers: £358,425 contracted annual recurring revenue, 11 customers and 21 headcount.
Basis: recurring revenue is "the contracted subscription value taken from executed order forms", excluding one-off implementation fees. A credit note does not change it, and first-term discounts fall away at renewal.
Not settled: the pack omits cash and runway, collections, pipeline, revenue by tier and customer, implementation income and quarter-on-quarter movement. It also gives no tier split or concentration view.
Currency: the figures are as at 31 Dec 2024, so they are a historic position and not current. The actions are all owned by Bridget, with timing set to the next board pack.
As found in this document
The document
Body
BB-Demo - Board Pack - quarter to 31 Dec 2024
Status: Final Prepared by: Bridget Kearsley, Chief Financial Officer Date of issue: Friday 17 January 2025 Period covered: the quarter ended 31 Dec 2024
Purpose of this pack
This pack gives the board the headline position of BB-Demo at the end of the quarter. It is deliberately short. It states the three numbers the finance system can cite, comments on what they mean for the business, and sets out what the board should expect to see in the next pack.
For the avoidance of doubt, every figure below is taken from our records at the quarter end. Where a figure is not in this pack, that is because it has not been confirmed to the standard I would put in front of the board, not because it is unimportant.
Headline numbers
| Measure | Position at 31 Dec 2024 |
|---|---|
| Annual recurring revenue (contracted) | £358,425 |
| Customers | 11 |
| Headcount | 21 |
Annual recurring revenue is the contracted subscription value taken from executed order forms. It is not the CRM amount, and it does not include the one-off implementation fees that customers pay when they join.
Annual recurring revenue
Read the whole document (5,978 characters)
Contracted annual recurring revenue stands at £358,425 at the quarter end.
Commentary:
- The figure is built from executed order forms, and it is the number I am prepared to defend to the board.
- It is a subscription measure only. Implementation fees are one-off, fixed-fee and reported separately, so they should not be added to or read into this number.
- A credit note is a one-off and does not change annual recurring revenue.
- Discounts apply to the first term only, so the figure will move at renewal as first-term discounts fall away and customers move to the current list.
What the board should take from it: the recurring base is the foundation of the business. The two engines behind it are keeping each subscription renewed at the right price and growing it through upgrades, additional users, additional connectors and new teams.
Customers
We finish the quarter with 11 customers.
Commentary:
- With a base this size, each account matters to the total. A single renewal, upgrade or loss is visible in the headline figure.
- A customer counts only where there is a live contract and invoices. An organisation marked "Customer" in the CRM with no live contract and no invoices since its last term ended is treated as churned.
- Each organisation is counted once, even where the CRM holds two records with the same domain.
- The customer count is shown by organisation, not by tier, in this pack. A split across Starter, Growth and Enterprise will come in a later pack once it has been reconciled to the order forms.
What the board should take from it: with only a small number of customers, account health has to be watched account by account, through usage, tickets, calls and invoices, rather than through averages.
Headcount
Headcount at the quarter end is 21.
Commentary:
- Headcount is taken from HR records, which decide who works at BB-Demo. Anyone who has left is not counted, whatever the CRM or call recorder still shows.
- The team covers delivery, customer success, sales, product and finance. A split by function is not included in this pack.
- Delivery and customer success capacity is the constraint to watch. Implementations are fixed-fee and fixed-duration, so each new customer draws on the same people who look after adoption and renewals for existing customers.
Reading the three numbers together
The three headline numbers describe a small, early-stage business with a contracted subscription base of £358,425, 11 customers and a team of 21.
For the board's attention:
- Concentration. With 11 customers, a small number of accounts will carry a large share of recurring revenue. I will bring a view of concentration to the next pack.
- Renewal readiness. The customer success team owns the renewal notice and the renewal conversation. The board should expect renewals to be reported by date and by price change in future packs.
- Value evidence. Customers who pay on time but question value need a value case built from usage, in particular questions asked and who asks them. Where one person asks a large share of the questions, that is a key-person risk.
- Data freshness. A brain answering on stale data is still available but is not delivering value. Freshness is watched separately from availability, and only Enterprise is credited for it under the service levels.
What is not in this pack
The following are not reported here and will be considered for the next pack:
- Cash balance and runway.
- Invoicing and collections position, including any overdue invoices.
- Pipeline and forecast for new business.
- Revenue by tier and by customer.
- Implementation fee income for the quarter.
- Movement in recurring revenue against the prior quarter.
I would rather the board see these once they are tied back to accounting and to executed order forms than see a number the finance system cannot cite.
Actions and next steps
| Action | Owner | Timing |
|---|---|---|
| Reconcile recurring revenue by customer to executed order forms and invoices | Bridget Kearsley | Before the next board pack |
| Add customer count by tier and a concentration view | Bridget Kearsley | Next board pack |
| Add cash, collections and forecast pages | Bridget Kearsley | Next board pack |
| Report renewals by date and price change | Bridget Kearsley, with customer success | Next board pack |
Board is asked to
- Note the position at the quarter end: £358,425 contracted annual recurring revenue, 11 customers and headcount of 21.
- Note the items listed under "What is not in this pack" and confirm the order in which it would like to see them.
Best, Bridget
Bridget Kearsley Chief Financial Officer, BB-Demo Friday 17 January 2025