I got off the phone with management today and thought I'd share a few key points:
Gross margins - should be up around 70% for their ARR but are masked by lack of scale and higher value but lower margin one-off site enablement revenues. Used the example of $1M in enablement revenue equating to $400k in recurring.
Of the 70 IP modules they have only 7 are actual products. For example, they have a product for casino anti-fraud which they've had some interest in but it's not a priority for them at the moment.
They don't expect to have to scale staff much to reach $5M in revenue.
There are no LTIs as they believe management are hugely incentivised. $40k cash STIs are linked to gross profit as they want to make sure their products are being priced to reach profitability. This is only in the founders control so much as nothing happens without board approval.
They have 200 of their hardware boxes in CBA branches that are not currently turned on. No guarantee they win these sites but is interesting nonetheless.
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