Haven't listened tl the recordimg but based off...

Haven't listened tl the recordimg but based off financials...

Keen to hear others thoughts on valuation:
- Assuming a 40m Operational Cost , 50% Gross Margin, they'd need ~80M to Breakeven.
- Currently at 54m ARR ~6M more to be onboarded - not sure how long it would take and cost to onboard.
- Assume its all onboarded and no churn. I.e. 60M ARR = 30m Gross Profit.
- Resulting in a Opertional Loss of 10M.
- Currently 8.3m Cash.
- They'd need they need 30% ARR growth to hit 60M ARR.
- FY23 ARR grew ~10% (net churn - including the 6M yet to be onboarded and 1m pending renewal)

So either they boost their sales ASAP else they require a cap raise come FY24 Q2 or Q3. Unless they have reduced their operational costs (which I doubt considering the current wage inflation market and push for r&d).

Personal thoughts:
- the reporting is confusing sometimes they use the term Jun 24 to represent the quarter performance and other times for the FY performance.
- leadership hasn't inspired confidence and long term alignment i.e. buying significant shares or renumeration pegged to shareholder return. What will the board do to structure alignment?
- nice marketing/ presentation style (CEO's expertise), not sure of CFO's capability. Is there enough substance to match the style?
- as above cashflow is a concern. Can r&d & sale hit the bottomline in time?

Without noting the technical value add of the services its hard to tell the true accomplishments of the mamagement team. (Maybe commentary from the CTO or explanation could be helpful). The challenge would be to ensure long term shareholder returns which includes avoiding further the medium term dilution.

Interesting to see:
- what the new board will do.
- the ACTIONs of the executive team
- the uptake of the product in the open market (lets be honest TAM doesn't mean much unless its executed and captured)
- financial performance of the next 2 quarters.

DISC: I am very negative in this investment and to be honest there are other opportunities that currently present a more attractive risk adjusted return. I like the potential purpose but there is a lot of risk to be mitigated. I appreciate the enthusiasm from the CEO but now its been a few years and given the position its crunch time for substantial results.