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Hi @piggybanks do you know how long ago EV where earning $250+...

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Heeman

5,222 Posts.

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15/06/16

22:31

Post #: 18041827
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Originally posted by piggybanks ↑

Ok I have an update on price paid for EagleView and revenue.

EagleView price was just over US$1.2bn with revenues of US$250+

The license deal with Spookfish is between 5% -20% depending how frequently it is reused and resold under software license. It is a bit complicated but let's say 10% for simplicity sake.

So that's US$25m of gross profit for Spookfish into a GROWING market with the US market leader.

A simple multiple of 10x earnings would mean we would have 35-40cents per share of valuation for Spookfish.

This won't be fully online for another 12 months.

They sell imagery but an increasing component of their sales is analytics, ie software to process the images.

The issue is EagleView currently have 40,000 contractors as clients using their software for images. But they don't have 100% US coverage and strictly only fly planes for images being paid for.

As I understand licensing the tech from Spookfish means they will now get full coverage but because they can fly at higher altitudes they therefore can capture more square miles. This also means they can get more US military contracts. They currently have some but will no doubt get much more.

Another positive is that Spookfish tech is about 50% cheaper to capture the imagery.

Eagleview capture 2.5m square miles and there is 3.6m square miles in the US.

Anyway very interesting insights. I think the PE player will do a NASDAQ listing of EagleView in about 12-24 months and will probably acquire the remaining Spookfish shares before this.

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Hi @piggybanks do you know how long ago EV where earning $250+ in revenue? SFI is now very entwined with EV and getting a handle on potential income stream to SFI is not easy with the company being tight lipped with any figures. Also the license %'s you mention above, i suppose they include the uncapped fee per square mile royalty?
Is there anything you can provide to give confidence to the %'s? Many thanks !

SFI Price at posting: 6.3¢ Sentiment: Hold Disclosure: Held
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