It is going well...I think this is the rerate we are due over...

It is going well...I think this is the rerate we are due over the next 12 months.

PME also did this before it rocketed up. We are only 9 years old.

The catalyst is key here. For me yes contract wins, renewals, and all this CARR and ARR are crucial, but the profitability cross over from loss making to break even to then generating profits which create free cash flow with recurring revenue is a business we all want to own.

Consider this...

Pro Medicus has been in business for over 40 years, and listed publicly for about 25 years.

By FY2015 (year ending 30 June 2015), Pro Medicus reported a net profit of $3.22 million, up 113% from the previous year, on revenue of $17.58 million

So breakeven was achieved prior to that, likely sometime in the early 2010s, coinciding with key US contract wins and the post‑Visage acquisition period.

FY2021, the company was generating strong free cash flow (~$31 million), maintaining EBIT margins above 63% ...

We have just become operating cash flow positive last year...and we have operated for less than half the time.

If we can continue to win contracts, increase the CARR with the constant push for net profits and rising FCF then with every increment of revenue it should flow to the bottom line. We are not at operating leverage levels yet.

I think though, we will be sold prior to ever achieving the PME level. PME is a founder driven business, that is a huge difference to why it has gone sky high, same leadership, same strategy executed for 4 decades.

I don't believe we will reach that height at all, and we dont need to, to generate a very healthy return on our capital.

We are tiny, in the cents, but the trajectory we are in in 24 months we could be measured in dollars, and that is still huge upside.

Once the business is profitable, and they have a few good wins, I dare say a takeover will come.