Well a few things to consider here.1. Has been poorly runIn many...

Well a few things to consider here.

1. Has been poorly run

In many ways it's been a typical private equity float.

All spin and bluster, big on promises, light on delivery or accountability.

The management structure is unnecessarily convoluted and also unfair to the rank of file staff, in favour of the founders/stock promoters.

The previous CEO jumped ship at the first chance despite getting paid excessively for very little in the way of delivery.

Another example would be one of the Founders: Kate Morris - who gets paid $212k in 2022 as exec Director. Apparently the role is "Chief Innovation Officer", yet she has also gone off and set up her own PE shop with another former Director of the company, Justin Ryan who was from the PE shop that put lipstick on this company before asking brokers to flog it off to unsuspecting punters at a massively inflated price. One can only imagine how dedicated she must be to her role as "Chief Innovation Officer" whilst trying to make some real loot via the PE company.

2. Quite Possibly undervalued

On crude metrics, we are talking:

$80m market cap
$30m cash (with about $6m funded via suppliers)

What do you get for this price:

$180m odd of revenue
481,000 of recurring customers

This is where i think the value resides
You pay $90m for the company (with $30m of cash on the balance sheet and no debt to speak of)
You get a brand and operating structure that services 481,000 recurring customers.
Effectively you are paying $195 per recurring customer.
Each recurring customer spends $225 with you each year.

I doubt one could replicate the business nor the customer base at even a fraction of this price.

3. $180m in revenue at 32% GP? Where does the money go

In essence, it's the $30m a year spent on advertising and marketing that gobbles up the profit potential.

The key questions seem to be:

Does this business need to spend $30m a year on marketing/ads to just stand still and pocket $180m of revenue?

or can either the revenue grow off the same ad/marketing spend?

or can the marketing spend moderate whilst maintaining the same revenue?