$1.94m in revenue.I did a post a couple of days ago saying that...

$1.94m in revenue.

I did a post a couple of days ago saying that on a 20 multiplier, fair value was $2.2mil in revenue, but that was based on having $35-40mil in the bank.

So $1.94m revenue, and $54mil in the bank means that fair value on a 20 multiplier is around $.46cents.

However, the quarterly shows how strong the three partnerships they signed for the quarter are - access to a total of 85,000 merchants on three non-competing networks shows they would have access to millions of customers. They just need to sign say 10% of this to experience huge revenue, and ability to continued growth.


All told, I know some may have been expecting more revenue, but PPI was never going to be the biggest game changer, given that it requires a huge drain on cash and therefore not hugely sustainable.

It may drop Monday, but as fair value is circa 46cents and the company has shown it has access to 85,000 merchants, I think the market will now price more firmly in the future revenue value, particularly given the outlook says that they are making progress on new partnerships and rollout into Indonesia and Philippines which will commence from May. All this means the June quarterly will be the release that will really show how successful IOU will be in South East Asia, not the quarterly that only reflects soft launch.

Particularly given that they have flagged new partnerships are progressing, and therefore new announcements on deals with Indonesian merchants could come any day.



Lastly, with $54mil in the bank and funding for 20+ years, IOU definitely has enough cash to spend on marketing/discounts that will go along way in rolling out into South East Asia.