Hey James, which aquistion are you suggesting they overpaid for...

Hey James, which aquistion are you suggesting they overpaid for ?
If it's Qustodio, you know their figures are not inlcuded in this quartely cash flow report ? ( will show in the next one)
The overall ARR revenue contributed by the company is mentioned, although we dont have infomration about Qusdotio's net margins. I'm assuming their (Qustodio) model is quite profitable and will be reflected with an improved combined balance sheet in the coming quarter.

I think it fair to say that FZO's large aquistions were not cheap, although in the context of tehir broad startegy to provide an global and unrivaled comprhensive online safety solution for children; I peronsally consider tehir aquistions to be fortunate, and very reasonably priced. When FZO paid over 150 mil AUS for Smoothwall, it wasn't for the 7 million or so EBITDA they reported the company was generating; it was for the technological access to what is now 38% of the students of an entire country (UK) which took over a decade to build trustworthy relations with, and for the 'monitoring' software and systems/IP which is arguably unrivalled in quality and function. If FZO can execute its ambition to provide a comprhensive solution and diversify with higher margin products (like 'Monitor') and parental controls, as its beggingig to do, then this is money well spent.

The startegic aim of FZO is to merge services and ultimately sell to parents on a mass scale through schools which is by far the product/service with the highest margin. It is now obvious to me this mass launch of parental products pushed through schools was delayed becuase of the knowledge of the Qustodio aquisition. This would make sense considering the quality of the product. I've done a fair bit reserach on Qustodio's offering: there appears to be consensus that it is one of the best parental control solutions available with only a very small number of competitors that can be put into the same category for quality. I'm assuming FZO could have scaled operations a while ago, though much of the rising costs in recent reports are associated with FZO's strategy to build a 'community' based approach that will provide the basis to distribute a high margin parental control service. I now eagarly anticpate their integration and execution.

Something that gives me cobfidence is that, if as reported both Qustodio and Smoothwall were in fact slective and enthisatic in choosing Family Zone as tehir parent company, this suggests a unqie partnership based on cultural compatibility. From a HR perspective I don't think we should underestimate this cultural connect, as some of the most highly sucessful technolical companies seem to be defined and driven by the strength and resiliance of tehir culture.

Also to adress your point James about the company targeting break even; its actually been a very long time since they mentioned the specific goal of breakeven in a specific timeline. I remember it was a goal a few years ago but things changed based on opportinities presented, and they subsequently organically obtained 16% of the US market and soon to be 20%. I'm not ignoring increasing losses shown in this report which needs to turn around with a possible recssion looming, but lets not ignore the quick aquistion of 16% market share (mostly within 2 yeras) in the most technologically compeitive and advanced country in the world.

In a webinar I remember watching about a year ago; the directors were actually very clear and credible in saying their main priority was growth and to capitalise on opprtunity. I remember Peter Pawkiwutsch saying quite frankly in that webinar, 'go somwhere else if you are after dividends anytime soon'. It appears to me the company now respcts the environment in which it is opetating in, and on the back of phenominal growth and very impressive retention rates; has clarified its ambition to scale and break even within a specific timelne. I will judge what i see in coming months as this ambition has now been made clear in a credible manner.