My take is whilst the ARR number is accelerating at an impressive rate, that achieved per the most recent Ann is still relatively small compared to their Annual Revenue. Also, this momentum may in part come at a future cost to their ‘perpetual’ license option ie the historical approach. In other words, a partial undermining or cannibalising effect.
That said, the ‘winning’ platform is in place and we are not talking a Company who has zillions of shares on issue. The forward projection on spend appear favourable. With continued momentum, a nett Profit of AUD 8 to 10 m is within sight and I will leave you to extrapolate what this would mean in terms of EPS, the PER and resultant SP.
Rokewa
RUL Price at posting:
67.0¢ Sentiment: Buy Disclosure: Held
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