BG-Demo - Board Pack - quarter to 30 Jun 2025

• Annual recurring revenue is the annual value of live, executed subscription contracts. It is not the CRM pipeline and it is not the CRM deal amount, which can include the one-off implementation fee.
• Customers counts each organisation once, however many CRM records it has. An organisation with no live contract is not counted, whatever its CRM lifecycle stage says.
• Headcount is employees as held by HR, not the CRM or the mailbox directory.

Commentary: recurring revenue

Contracted annual recurring revenue closed the quarter at £1.8m. This is the figure I would ask the board to rely on. It is built from executed order forms and checked against what accounting has invoiced.

Two cautions on reading it:

• A credit note is a one-off adjustment and does not change annual recurring revenue.
• A first-term discount applies to the first term only. Our records show that the figure above reflects contracted terms as signed, and the effect of discounts ending at renewal is a matter for the renewal forecast rather than this headline.

This pack does not set out a movement against the previous quarter, because that comparison is not part of the facts held for this issue. I would rather leave it out than offer a number I cannot cite.

Commentary: customers

The business ended the quarter with 47 customers. Each is counted once. I would be grateful if the board would treat this as a count of live contractual relationships, not a count of CRM records marked "Customer".

What this pack does not show: the split of customers by tier, the geographic mix, or the renewals falling due in the coming quarters. Those belong in the renewal review and will follow separately.

Commentary: team

Headcount at the quarter end was 36. The team spans delivery, customer success, sales, product and finance. Hiring and attrition detail is not included here.

How the numbers were checked

• Annual recurring revenue was reconciled to executed order forms, with accounting used to confirm what was invoiced.
• The customer count was de-duplicated so that one organisation, one record, applies.
• Headcount was taken from the HR record.

Where the CRM and accounting differed in the course of preparing this pack, accounting and the executed contract were preferred.

Risks and watch points

• Renewal pricing. Customers signed under earlier pricing will move to current list prices at their first renewal after the changeover. The effect on annual recurring revenue is a forecast item, not part of the position reported here.
• Stale data. Customers whose indexed records stop growing are a value risk even when they raise no tickets. Customer success tracks this and will report separately.
• Key people. Where a customer champion leaves, adoption can fall quickly. This is monitored account by account.
• Collections. Cash received against invoices due is reported in the finance pack, not here.

Decisions and asks of the board

• Note the quarter-end position: £1.8m contracted annual recurring revenue, 47 customers and 36 staff.
• Agree that the next pack adds the movement against the previous quarter, the tier mix and the renewals calendar.
• Confirm that executed contracts and accounting remain the basis for all figures reported to the board.

Next steps

• Finance to circulate the renewals calendar ahead of the next board meeting.
• Finance to add a reconciliation note between CRM and accounting to the next pack.
• Customer success to supply a short note on adoption trends for the largest accounts.

Best, Bridget

Bridget Kearsley Chief Financial Officer, BG-Demo 16 Jul 2025