Its Over, page-348

Ihad to post this…..

 

3DPcame out today with an update on its business/sales and amongst others, stated

 

“The latestenterprise utility customer was secured at an initial $7,500 monthly Data as a

Service(DaaS) subscription for a minimum of 12-months ($90,000 pa), which is expected

to grow materially as more 3D data and users areadded.”

Seriously,I read that to mean that is the best you’ve got - $90k for them to announce it.Because there is none exciting and noteworthy to announce.

Atthe heart of this, I have previously articulated why it is important tounderstand your company’s revenue model. How large is a single deal? How longdoes it take to close a deal?

FGOwhich got pounded this morning after disclosing that its AMP deal is notgetting any traction after all efforts doing piloting. Well perhaps it is dueto the woes AMP is facing but a similar story with another of its customersLiberty Mutual. It takes a long while perhaps up to a year in collaboration fora possible million dollar deal.

Andthen you have so many others with small per deal (CT1 / BUD/ YOJ) that takes along time to accumulate while cash is burning.

Atthe other end of the spectrum, while TTT has no or very minimal revenues, eachdeal can be a few millions of dollars and they would be with global players.BIT if commercially successful can be taken over by big pharma for multiples ofwhat they’re trading at. And likewise as well for 4DS.

Thepoint I am making is that, if you are looking for multi-baggers, look forscalability and scalability in the form of global penetration and reach anddeal sizes as well as whether the company is uniquely position with its valueproposition with a first mover advantage. TTT, BIT and 4DS have all thosequalities despite not having revenues.