The RPMGlobal (ASX: RUL) share price climbed nearly 19% higher today after the company released a business update to the market. Here’s what you need to know.

Over the past month, shares of RPMGlobal Holdings Ltd have almost 30% higher. For comparison, the S&P/ASX 200 (INDEXASX: XJO) has risen 5% in the same time.

About RPMGlobal Holdings Ltd

RPMGlobal is an IT company within the mining industry that has traditionally provided advisory services and technical support in regards to mine preparation and planning.

Questions of where, when and how to dig are the types of questions RPMGlobal’s technical consultants and mining software addresses when dealing with miners looking to extract their commodity in the most efficient way possible.

What’s Happened?

This morning, RPM announced an update on Total Contracted Value (TCV) and Annual Recurring Revenue (ARR) from software subscriptions.

So far in FY20, the RPM’s TCV of new software subscription revenue is $17.7 million — an increase of $7.3 million from the company’s previous announcement on 19 November 2019.

As of today, RPM’s ARR from software subscriptions is now $10 million per annum — an increase of $2 million from the previous announcement in November.

RPM’s FY20 Outlook

RPM is in the process of preparing its financial results for H1FY20 and expects to be in a position to release this to the market in late February 2020.

Outside of normal statutory financial reporting, the company intends to next update the market once TCV growth is greater than $20 million, after which it intends to provide updates in $5 million TCV increments.

The RPMGlobal share price closed the day 18.72% higher with shares last trading at $1.11.

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