Ann: FY23 Results Presentation, page-11

Some stale (and frustrated) former bulls here evidently. Have found this is usually a good sign for further upside at inflection points. Dipped the toe in at 72c pre result given stock now hated and very low ownership across active microcap managers from perusal of their performance reports.

Management still have a long way to go re driving operating leverage but clear the tech sell off has beaten some (long overdue) sense into them re costs. Debt balance obviously a risk (possible cap raise) but in my view also likely to keep CAT much more commercial than would be the case with a large net cash balance.

Ultimately think there is more value here through gradual penetration of the professional market op than wildly trying to chase TAM that doesn't exist yet.

Re timing of release the biz is run from the US. They posted a comprehensive youtube run through of the preso of result immediately last night and then made themselves available for a conference call at 8.30am this morning. That is not an unusual time for a result call.

ACV is still growing nicely and looks to have beaten consensus expectations. Revenue is now completely dominated by subscription with capital rev down to sub 5% of total in 2H23. Probably the reason their bank has lent a loss making company a not immaterial amount of dollars.

FY24 FCF aspiration is in no way risk free but reckon you're being compensated for cap raise risk by modest EV/Sales at this juncture (1.3x on my numbers).