NEA valuation, page-4

It’s like all tech companies though - upfront setup costs are very high to get technology in place, stable and operational. Once it’s there, they can then start rolling it out to more and more customers - and it’s a SaaS offering, so very easy to sign up to and start using. Having worked with a lot of SaaS products, I see the beauty in it from a customer perspective- virtually eliminates all the on premise infrastructure. Councils in Australia are lining up to go to the Cloud. NEA has a compelling product and it will be very sticky from an ACV point of view - once Council / Govt adopt something, they don’t change for years.

So yes, you’re correct they are bleeding money, but so did Microsoft, Xero etc when they started. The runway ahead is immense imo - especially if they crack US local govt / military etc.