Ann: Investor Presentation, page-42

Yes, management were trying to show that at the current market cap which was $320m, the market is valuing lvt at 3.2x future arr estimate of $100m. This is because most aren't looking that far ahead and that there is a long way to go to get there hence why we are not already a $1bn company.

But as people see the arr grow, even at a constant revenue multiple, share price will go up the percentage increase in arr all else equal. of course, the market is not this simple especially in the short term, but for SaaS companies it is definitely not unusual to see business valued based on forward arr or just a multiple of current arr. Vmk has already shown that based on very normal revenue multiples (that we already have now) and arr figures by the end of the year, we should see a sp of ~90c all else equal.

By the time it's 100m who knows where we'll be, but management are just trying to show that if lvt now is valued at 3.2x future arr of 100m, if we end up at a normal multiple of 10x when we get there as risk is minimised as we approach it, share price will double- triple (because we are currently at 3.2x and likely would be at 8-10x multiple by the time we reach that goal in June 2021).