Pareteum Corp. (AMX:TEUM) closed off 2017 by signing a record-breaking 36 Month Contractual Revenue Backlog worth $147 million. The company has witnessed a nice 17% increase in its stock value as a result of the announcement for the contract, which went out today.
At the time of writing, Pareteum stock is trading at $3.137, putting it up $0.457, or 17.052%, from yesterday’s closing price of $2.680. The day has ranged between $2.920 and $3.390, making the 52-week range between $0.090 and $3.990.
So, what’s the big deal about a Contractual Revenue Backlog? Essentially, it means that there is money, in this case, $147 million worth of money, that the company has technically earned but hasn’t actually received yet because it has yet to process it, for whatever reason. It’s a backlog of revenue. In the case of Pareteum, it’s made up of service establishment and implementation fees, guaranteed minimum monthly recurring fees, and the resulting monthly recurring revenue from contractually scheduled subscribers to the business. So, that’s $147 million in revenue that Pareteum is pretty much guaranteed to receive over the next 36 months. $147 million is a huge amount of money, so it’s no wonder that the stock is moving on the announcement of this news.
“These contracts establish Pareteum as one of the fastest growing Cloud Communications companies in the world,” commented Hal Turner, Executive Chairman and Principal Executive Officer of Pareteum, “Our results are, we believe, derived from how our services and solutions solve customer problems, saving materially in operations expense, and most importantly creating faster revenue for our customers, while opening new sources of revenue that would have previously required multiple vendors and complex system integrations.”
Pareteum is on track to have an amazing year financially. If it continues to improve its cloud services, I wouldn’t be surprised to see its stock grow along with it.
Featured Image: twitter
