I, too, am slightly perplexed about this CR, as one could infer from it that the Company’s product suite wasn’t fully ready to attack a wider addressable market.
My investment thesis here was based on the assumption that the EWN software was already established, and just needed a suitable platform (e.g. ESRI) to generate significant benefits of scale; this development, at a minimum, challenges that assumption.
Anyway, the market seems to have received it positively, possibly thanks to DMX’s backing; so, while I have taken this sudden bout of liquidity (almost a million shares traded over the past two days, against a daily average of just ~50k) as an opportunity to reduce my holding to a smaller free-carried position, I will personally give Management a chance to deliver on their “accelerated growth” promise.
If the opportunity is really there, and at a current (estimated) EV/ARR of [(60.0m+11.6m)*0.17$-3.0m$]/2.5m$ = 3.7x, the residual upside should still be material.
