Took a starter pack as its trading at capital raise price, small discount to sophs which was nice to see.
Relentless exchange of hands at 0.30 though, no idea why lol?
Seems cheap, but not rock bottom cheapest on the market, trading $32M EV so about 5x Revenue, 5.3x Gross Profits.
I think premium comes from their rapid growth pace at the moment and the fact gross margins last quarter was 93% and quarter before was 89%, so very scalable.
It pretty much will come down to this image below from AR;
If management deliver $10M CARR plus additional 10-20% non recurring revenue on top should bring $2.5-$2.7M revenue minimum per quarter. If thats the case, it trades 3x revenue, probably 3.5-4x gross profits, rapid growth and cashflow positive. I dont think it will happen this quarter, but traction could come quarter after.
So IF the above is assumed true, usually this something scalable with high 80%+ GM, Cflow+, growing revenue 50-100% p.a can trade at least 8-10x revenue in an average market. I guess that's the reward, risk is if they can scale up without blowing out overheads/admin, if management deliver that "minimum $10M CARR" and if products get traction.
Lets see.
