I went out before the auction and seem to have missed the action.
@remirez
I've said it several times, anyone expecting decent revenue numbers in the September quarterly report is living in cloud cuckoo land.
I'd say there have been under 25,000 downloads of the Freeway app (by say 15th September). Dataflex hasn't been launched & Tata white label isn't live yet.
So how could there possibly be $5M, $10M or $20M of revenue from that userbase? its impossible.
Secondly, Syntonic's revenue is not like the revenue (sales) that you're really talking about. In the Tata deal we'll not see sales, we just get a share of the net profit. Others are going to be similar, I imagine.
Some company's have sales of $100M but a gross profit margin of just 2-3%. You don't value them on sales you value them on a price/earnings multiple. That's how Syntonic will be valued & the multiple it trades at will depend on how fast those earnings are growing.
Given the current rate of downloads, Tata live from 1st October, Dataflex possibly Q4 as well. I'd say January is the first time we'll get to see the true profitability of the business.
I'd like to think we'll be seeing a profit of around $2.5 - 3M for the December quarter ( $10 - 12M effectively for a year, so current share price would be a P/E of around 10) growing to $4.5 - 5M the following quarter which would put the P/E at under 5 on the current share price.
Company who are nearly doubling profits each quarter don't normally trade on P/E's of 5 or 10, its multiples of those numbers.
LOTM
