INVESTOR UPDATE JUNE 2020, page-73

Very interesting Birdman29, but I think the cash flows estimated by Simply Wall Street for the next 2 years are excessively conservative.

NEA has guided to cash flow positive in FY20, and is highly likely to continue its recent tight costs discipline. Therefore, it is hard to comprehend how Simply Wall Street can estimate FY21 free cash flow at only $1.77M. That would imply that costs grow at around the same rate as revenue, which is unrealistic IMO.

My expectation is that capture costs will be slightly reduced. NEA has indicated their capture program would be optimised base on "known and expected customer demand". When an the upgraded camera system is launched, capture costs can further decrease, or NEA can further improve their offer. Salary reductions will revert to normal in November, but the 10% staff reduction is likely to continue.

I would not be at all surprised to see free cash flow exceed $10M in FY21 (don't forget the revenue base is already around the $100M mark), and continue to grow very much faster than the revenue growth rate due to the scalability referred to by Pioupiou. Revenue growth of 20-40% could be expected again post Covid. So what will be the growth rate in FCF?