A few notes from the Q4 Shareholder update this morning:· Q4 Annual Recurring revenue $10.06m
· Cash burn continuing to decrease due to organic/internal growth. Have come down from ~$12m annual expenses in FY22 to ~$3.3m in FY24 (reduced to by circa 73%)
· Gross profit margin is good at 78%. This will be more evident to bottom line as new deals / contracts come online
· One new deal gets FCT to profitability – CEO Danny currently in Mexico for contract negotiations (Telmex)
· The fact they introduced Omar Vadillo (12/13) suggests a deal is on the cards
· Annual recurring revenue (ARR) pipeline of external opportunities is greater than the company’s current market cap of ~$30m
· In a nutshell, you have a global tech company with Bluechip clients such as Microsoft, Nasa, Department of Defence etc., that does $10m revenue currently, is borderline breakeven & has a pipeline of ample opportunities to grow that revenue
Exciting times ahead it seems. Key is to get those deals and revenue up. Depending on growth rates & profit margins, tech companies can trade anywhere from 10x rev all the way to obscene 100+x rev. So even low ball 10x on $20m of rev is 200m market cap which is ~12c per share or 6x from here.
