GM approaching 60% is critical. Their revenue growth has been somewhat lumpy until now it seems. However it's tipped to grow strongly from this quarter. We'll see this from IBM + Lingotek and a recovery in normal business activities. Wouldn't be surprised to see $50m in revenue for Fy22. If they can achieve 60% GM they'll take down $30m. Overheads should hopefully flatten off and we'll see strong positive op cf.
The development of an API to integrate with IBM will surely encourage other companies to see Straker as easy and efficient to integrate with.
Growing the SaaS features is also a step in the right direction, this will boost GM even further.
The focus on enabling customers to be onboarded quicker by giving them options to use Lingotek or the RAY platform is a good strategy.
Overall I'm happy with the valuation vs opportunity here.
STG Price at posting:
$1.77 Sentiment: Buy Disclosure: Held
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