Ann: Enterprise Sales & TCV Update, page-65

Hi @swan11

Thanks for that, glad it’s a useful perspective. FWIW the bull story as expounded by others here does have some substance if you just boil it down to simple numbers; for example:

- sub $100M market cap
- audited FY21 revenue of $3.5M
- projected FY22 revenue guidance of $17M to $19M (take the mid-point of $18M)
- if achieved, revenue growth of >400% vs FY21
- assuming say 85% of that $18M is ARR (Is it? Big assumption but I’m unsure of how they book sales)
- price to sales (ARR) of 6.2x
- in a fast growing industry with a theoretically huge Total Addressable Market.

So yes, there’s a story to be told here. But the bear questions remain:
a) how solid/realistic are these amazing-sounding revenue figures? They did $9.3M in the first half which is nothing to be sneezed at, if they repeat that in H2 they’ll meet guidance.
b) can management be trusted to deliver post a troubling CR?
c) why is there so much focus on TCV as a metric?

That’s my view on it and why I’m curious to see if it goes boom or bust. The upcoming 4C due this month will help a lot.

Cheers