Ann: Chairman & MD AGM Address to Shareholders, page-4

I'm looking at this more from a sales perspective instead of a net profit.

Our Chairman mentioned this in his letter - "There can be no bottom line without a top line."

At current prices, the market is valuing this at close to P/S of 1 and this isn't even taking into account future organic growth of 15-20%. Not acquisitions, ORGANIC. If we factor in acquisitions, our growth rate is over 40%!

In regards to NPAT.

As a startup, you don't want to be growing your NPAT because that just means you will be paying more tax. You want to be reinvesting all that back into the business to grow sales.

I've seen multiple short-term management growing NPAT to please shareholders in the short-term but in the long-run it damages the growth rate of the business. I believe Craig and his team would execute on what is best in the long run because management owns ~15% of the shares.

A famous example would be Amazon where their PE is over 90. You won't see a short-term management pushing down their net income that much because investors don't like it and he/she may lose their job and bonuses. Their mindset is anything with a PE over 30 = Sell.

With that said, there are two things that I would like to know:

1. Their retention rate. When you transition over to a SAAS model, retention rate is probably #2 most important metric behind sales.

2. Their cash burn and how they are going to fund it. We might see a CR in the near future. I would like to see them secure debt funding instead of CR at these levels.