Ann: Xref Limited - Annual Report - 2023, page-14

The migration to SaaS is the main one of interest to me.

Here is how I am looking at what Lee called the Big Migration.

Customer Conversion to SaaS --> Of the 1200 customers, 271 have moved across to the SaaS enterprise platform. The 271 represents about 23% of the 1200.

ARR run rate --> Have gone from $0 to $7.6m in ARR in last 12 months, which I gather is coming from those 271 customers. This ends up being an average of about $28k a year based on the customer numbers. I think the market will wake up when the ARR gets over $10m, which is roughly 360 customers signed up to the SaaS enterprise platform.

Overall Potential --> Say we end up converting about 70%, or about 840 customers. If the average customer number stays at $28k, this would see ARR climb to roughly $23.5m.

Valuation --> If we get valued at 3 times SaaS revenue, which would be considered low if we were a profitable SaaS company, then the market cap heads back to $70m, which is around the 40 cents mark. I think it can easily exceed that longer term, but needs to get past this migration and illustrate strong growth in key international markets (US / UK).