Ann: FY22 Results Presentation, page-3

Forgetting the share price performance for a moment, I struggle to understand the business model here. Clearly they have a very good product, as around ~30% of the elite sports teams TAM are now customers. But what is it going to take for the company to be profitable, 50% of TAM? 75% of TAM? 100% of TAM? A bigger TAM?

While revenues have grown by 14%, so called "variable costs" have increased by 40% and so called "fixed costs" have increased by 86%! This is not just a one-off report, go back and you can see this trend of increasing fixed costs. I have noted previously that they are shifting expenses to CAPEX, but really these should be treated as COGS. It seems like much of their CAPEX is maintenance CAPEX and not growth CAPEX as they report - thus the compressed margins, negative EBITDA, worsening NPAT, and negative cash flow.

On cash flow, taking out acquisitions of $20m, they still have a cash burn of around $20m p/a vs $26m in cash (~June 2023 cap raise?). I know I know, the argument is that they are investing for future growth - problem is, hard to see this operating leverage in the financials being reported.