My point was that one can find the reasons for the capital raise detailed in the presentation. Refer to Slide 3, which explains that the funds will support the extension of R&D programs to maintain DRO market leadership and drive growth in AI and SaaS. It also specifies that the requirements for R&D are to meet the demands of their Tie 1 customers. Additionally, slide 19 outlines the use of funds, as you shared above.
We know that Olegs goal is for the business to be a 300 - 500 million revenue company within the next 5 years, with 50% of that revenue coming from SaaS. The Capital Raise, as mentioned in the presentation, is all about driving product innovation to keep up with demand, especially as they push towards a SaaS based revenue model.
A SaaS model requires a business to stay ahead of the curve, due to customers expecting regular, best in class updates as part of their subscription. That’s why investing in R&D is necessary, especially if they want their business model to be 50% SaaS based. It’s what will keep their products competitive and customers renewing their subscriptions.
All of this means nothing if it doesn’t drive sales, but I see consistency between the 5 year goals they’ve set and recent management decisions. The business needs capital raises to grow, and with the right reasons behind them, I'm content with it.
In the short term, people can try to time the bottom before it rises again (pending results).
(20min delay)