Hi mate, I don't know if floundering is the right word. Management were clear about their intent to focus on defence, use services to get the pull-through effect of licences we're seeing now, and there also periods of normalisation coming out of 2 M&A plays.
As noted in my previous comments relating to ~$3m in deferred revenues, this means over the next 12-months (very simplistically admittedly) there's going to be an additional $750,000 added to each quarter in revenue. This also assumes the near zero customer churn rate holds true.
In my view, the work done 2 years ago has set the platform for what we're able to observe now, and project into the future.
I think the market - and myself included at times - assumed far stronger growth, as exhibited by the share price movement.
We can see above the current share price is 51% of the share price at 30 June 2021.
This is despite recording their first positive cash flow half yearly since then, recording almost 3x growth in licensing based revenue, approximately 1.3x services based revenue, and overall, approximately 1.6x total revenuee over the intervening period.
I'm certainly not going to say management has gotten everything right, all the time, but what I will say is if the underlying business performance were viewed outside of the irrational share price movement, I think most rational observers would feel they're moving in the right direction.
For my preferences, not fast enough, but let's see the impact of a few more POCs, and the pull-through effect of some of these services into license growth.
AR9 Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
