Make no mistake, this is a tender win, which means that they...

Make no mistake, this is a tender win, which means that they most likely beat competitors such as the likes of SAP Concur, etc. From my limited understanding, it looks like the GovERP works by having standardising one provider so the government doesn't have multiple select multiple. It saves them money to do so and avoids overlapping in different softwares etc.

How this will play out from here I reckon depends on the agencies take up, which is hard to figure out, however, I would imagine there's reasonable chances for an accelerated take up as that's why they opted in, in the first place. The ARR can jump from what we currently have for Fed Gov which is about roughly ~850k to ~5.4m.

So to sum it up, here are my takeaways:

- Great product validation: 8CO likely won over larger competitors for the contract.
- Capable management: can properly execute.
- Pipeline growth: 4.6m ARR if all agencies sign up under GovERP (Should this be the case, it'll likely take a few years).

Good work 8CO team.