Notes from the Q4 2018 CC

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• Q4 revenue from Artilium was $5M, it has already met the targeted synergies.
• Pareteum organic growth in 2018 was 101%, growth including Artilium was 139%.
• Pro-forma 2018 Pareteum + Artilum revenue was $56M.
• Backlog conversion was 97% in Q4, slightly down from 100% previously. Custom made solutions for customers seem to be one thing causing some delay, but it makes the platform more valuable and sticky (hence that whopping dollar net expansion rate of 214%).
• But most of that will be done in the next 4-6 weeks and this will unleash backlog conversion.
• Revenue per employee in Q4 was $415K, up from $233K in Q4 2017, indicating strong operational leverage.
• iPass acquisition is expected to be accretive in Q2 (the first full quarter of acquisition as it closed Feb 12).
• There are $19M of cost and expense synergies from iPass, $11M of these have been achieve through headcount reductions. This can be exceeded in 2019.
• With iPass, the company has over 10M of connections.