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Ann: Transformational agreement to launch Envirosuite in China, page-44

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Lindo

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11/09/19

19:56

Post #: 40387864
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Originally posted by Sky's the limit: ↑

OK, so here's some crazy hypothetical that's running through my head.

Since Zhigang Zhang partnered with PET, their revenue went from $3.8M to a projected $27M-$30M by Dec'19. So taking the middle ground of $28.5M gives you a 7.5 fold increase. At the latest figures, 6/7's of revenue were down to China, and 1/7 rest of the world.

IF, (& I've no idea how closely the EVS experience will match PET's), but IF, EVS were to follow a similar path of a 7.5 fold increase in both Revenue and ARR, that would give them Revenue of $53M and an ARR of $42M. If the first $12M of ARR covers expenses to breakeven, and the rest of the $30M of ARR translates to a Profit Margin at 65% (which I actually think is a little conservative), then you'd end up with Profits of $19.5M.

Where it gets a bit crazy is if you put those figures next to PME's

.......................................................Revenue. Profit. Market Cap
PME (latest figures) $50.1M $19.1M $3,349M
EVS (Hypothetical in 2 years) $53.2M $19.5M $87M (current)

I know it can't possibly happen for the simple reason that I can't get that rich!!

But it's nice daydreaming about it.

Obviously you can question one or two of the assumptions, but given the basic premise, you get the gist.

Expand

Interesting read you sure are excited about EVS
The annual recurring revenue expected 2020 is 12 m plus 14 m pipeline with a new china contract now in the making ,old forecast could come in to ?
Their bundling of SAAS will lead to higher profits
On the China front Wastewater treatment + ENVIRONMENTAL Regulators uses+ end to end solutions
As we know their profits in using SAAS
Must not forget our new investor MR Zhang

Originally posted by Sky's the limit: ↑

OK, so here's some crazy hypothetical that's running through my head.

Since Zhigang Zhang partnered with PET, their revenue went from $3.8M to a projected $27M-$30M by Dec'19. So taking the middle ground of $28.5M gives you a 7.5 fold increase. At the latest figures, 6/7's of revenue were down to China, and 1/7 rest of the world.

IF, (& I've no idea how closely the EVS experience will match PET's), but IF, EVS were to follow a similar path of a 7.5 fold increase in both Revenue and ARR, that would give them Revenue of $53M and an ARR of $42M. If the first $12M of ARR covers expenses to breakeven, and the rest of the $30M of ARR translates to a Profit Margin at 65% (which I actually think is a little conservative), then you'd end up with Profits of $19.5M.

Where it gets a bit crazy is if you put those figures next to PME's

.......................................................Revenue. Profit. Market Cap
PME (latest figures) $50.1M $19.1M $3,349M
EVS (Hypothetical in 2 years) $53.2M $19.5M $87M (current)

I know it can't possibly happen for the simple reason that I can't get that rich!!

But it's nice daydreaming about it.

Obviously you can question one or two of the assumptions, but given the basic premise, you get the gist.

Expand

EVS Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
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Ann: Transformational agreement to launch Envirosuite in China, page-44

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Ann: Transformational agreement to launch Envirosuite in China, page-44

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