Ann: Appendix 4C and Quarterly Update, page-3

I've started looking at this company in recent days.

It is an interesting company, operating in the fast-growing market that is employee experience and wellness.

If there was any doubt as to whether employee experience and wellness was ever a thing before the current global pandemic, those doubts will now surely be put to bed, given the tectonic shifts currently underway in the manner in which work gets done.

And this is not just a mere conceptual company; it is a real business:

- It has been in operation since 2006
- It has almost 180 corporate and government clients, representing ~2.4m employees
- It will this year generate around $50m in Revenue and $40m in Gross Profit [*]
- Almost US$75m has been spent on product development
- It's Revenue has been growing at 25% CAGR over the past 5 years
- It spends in excess of $40mpa on Sales/Marketing and R&D
- The founders are still involved in the business, and didn't use the IPO to sell any of their shares

So it is not just some two-bit wannabe player; it is a real company.

Given it is newly-listed, I'm not hopeful of getting any answers, but I thought I'd hang a few out there to see of anyone else is up to speed with the company, and has some value-added insights:

1.  Why did they list in Australia?  It's a US-based company that does all its business in the US and Europe (nothing in Australia)?  (Looks like one of Macquarie's US-based bankers established a relationship and convinced them that Australia was a good place to raise equity capital.)

2.  Why did the stock perform so poorly since IPO (other than because of the virus)?


(It is nigh impossible to buy the stock via an online broker given the acute lack of liquidity of the shares - one wonders why they bothered listing; it's almost like a mere compliance listing they have here.)


[*] It is not bottom-line profitable, but that's because, to drive the strong top-line growth, they manage the business for break-even operating profit by increasing investment into "good costs" - Sales & Marketing and R&D (in the 3 years to FY2020, they will have more than doubled Sales & Marketing spend (to US23m) and increased R&D spend by 80% (to more than US$18m).   Those are big numbers for a company with an enterprise value of less than $300m.

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