That's a fair call and a reasonable concern as to ongoing opex once up and running.
My understanding of software/technology businesses is that they have a product/development roadmap which they plan for continuous development/improvement of the software/product over time, introducing new features, bug fixes, efficiencies over time.
So I think it's fair to say that there will be ongoing costs to develop, maintain and support the software. However, the greater the number of customers utilising the software, the ongoing development costs start to consume a lesser proportion of gross revenue thanks to achieving economies of scale.
When it comes to payments processing, typically the greater the volume processed the lower the costs incurred to process the payments as you are then entitled to lower rates from the likes of Visa/Mastercard/Fiserv/Amex etc and hence your margin increases whilst charging the customers the same rate.
I guess the $m question is what level of payment volume does Spenda need to achieve in order to improve its GP margin and also to achieve a NP.
Given they processed $250m in payments volume in FY'24, my impression is that (ignoring SaaS fees and lending income) they'd need to process at least $750m in payments volume to be sustainable.
This deal (i.e. the known $50m) plus Limepay's current volume, when added to Spenda's current volume gets them to about $410m before anything new comes on board. So, whilst not there yet, it is nevertheless a step in the right direction.
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Ann: Limepay agreement with Lessn to process all Payments Volume, page-52
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