Velpic has a bright future....., page-133

Interesting recent article on current SaaS multipliers.

https://www.livewiremarkets.com/wires/the-highest-priced-maturing-saas-name-in-the-world

Puts the average multiplier at 6.3x Revenue.

Based on this ONLY and the 678.5m shares now (post escrow release) VPC's fair value is around where we are.

HOWEVER

Having said that smaller SaaS Companies, which are growing at much faster rates than all of those in the table above tend to attract higher multiples (refer to my earlier thread on SaaS valuations).

Based on a higher multiple as worked out under the more specific methodology in my other thread a multiple of close to 10x would be more appropriate imo.

A conservative multiple of say 8x puts us at a MC of $8.3m (or 1.2c per share). 9x gives us a MC of $9.1m (1.3c) and 10x a MC of $9.8m (1.4c).

This is based on SaaS revenue only and revenue from 2 months ago.  I assume the Dash business would be worth something.

Assuming a conservative 30% QoQ growth for Dec puts CAGR at $975k.  Assume a cash burn of $800k.  This puts us at a MC of $9.3m (1.3c) at an 8x multiple.

As you can see from this December estimate 30% growth QoQ and cash burn of $800k is actually ACCRETIVE to MC so in theory meet these metrics and the SP should appreciate.

Put the other way, to create enough new MC value to offset the decrease in MC caused by the cash burn of $800k we would need to increase CAGR by $100k at 8x ($800k/8). $100k on current CAGR of $750k is ONLY a 13% QoQ growth.

Bottom line is we are currently being valued as a mature SaaS business with no premium for the fact that we are growing at 35-50% QoQ.  Secondly anything over a 13% QoQ growth should be accretive to the MC/SP.

Cheers,
TT