Further to my last 2 posts about the significance of the rapid growth rates in the three key verticals in North America (see Post #:47294645 and Post #:47308225):
The North American insurance and government verticals should reach around AUD$30M combined by Dec 2020 if the 6 month growth rate remains about the same over the current 6 months (about 32% and 19% respectively);
Based on the actual performance of these top two verticals and the likely take-up of the AI offer, an NA annualised growth rate of 40-50% should be achieved.
If ANZ grows at about its historical rate of 12-20%, then a combined growth rate of around 25-30% should be easily achievable for FY21. This compares with NEA's stated target ACV growth rate of 20-40% over the medium to long term.
As NA becomes comparable or greater in size to ANZ, the overall growth rate should gradually be more influenced by the higher NA growth rate. I expect NA to be the same size as ANZ by June 2022.
My conclusion is that I see the 20-40% target as a reasonable one by NEA. As the market comes to accept this, I expect the share price has considerable upside.
The above growth rates are all based on recent past announcements and performance, and do not take into account any acceleration resulting from deploying the current cap raise funds.
