Belief in the thesis comes down to three things for me: 1) are the 3 lost NA customers really a one-off; 2) will they sustain ACV growth of 20-40% over the long term and 3) will cost growth now slow down as stated (Rob seems pretty confident about that)?
I agree now is the time to push on NA, so I am not worried about the business being unprofitable at this stage. Australia shows the business model is profitable at scale.
Having topped up on the bad news in January, I am a HOLD and will take stock again at the FY20 results.
NEA Price at posting:
$1.76 Sentiment: Hold Disclosure: Held
