IMO all depends on the margins.
If you have $27m in revenues with very high gross margins, as the company is indicating then the nett profit will be much higher.
This in turn will obviously reflect in the share price.
The other thing is factoring in future earnings potential and how quickly investors perceive the future earnings will flow in to the company.
If investors expect the revenues to grow from the current $16m to $100m in 2 to 3 years then they will be prepared to pay a premium for these future earnings IMO.
You just have to look at companies like Afterpay etc etc that are trading well above normal multiples.
CM8 Chart Indicating Breakout to UPSIDE, page-37
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