Some interesting stuff you cite there that i wasnt aware of. I wonder however if you could help me out with my maths here as im still struggling to see evidence of massive revenue generation from strata.
Previous investor packs have long quoted revenue from strata management as being $2per month, if we look at fy16 results then they tell us that strata revenue was $2.8m and the investor pack informs us that there were nearly 200,000 units under management, which by my calculations means revenue of $14 per annum per door or slightly over $1 per month. What am i missing there?
The announcement on PICA which is indeed impressive has a bunch of data in it that again should allow us to logically work out the revenue per door. I note that the release is couched in language such as 'expected' when it talks about total revenue and indeed the extra revenue from non strata software or services and it quotes this as between $0.5m to $1m per annum so it definitely isn't certain and fixed. So if we assume that figure is $750k and it doesn't start until year 3 once they are up and running then thats $6m of 'expected' but not guaranteed revenue. that then leaves about $15m of strata revenue for 200,000 units, $1.5m a year which works out at $7.50 per unit per year, or notably less than $1 per month per door. Now that actually feels entirely consistent with the fact you would expect a major client to negotiate a discount on software.
On the new CEO's strengths and weaknesses in this area, well i just wouldn't know, as someone else stated i dont think he has even started yet so it seems a bit early to judge him. No CEO in the world is an expert in every area of his business and must rely on having a sound and balanced management team, i see from the KMP list that there are people still in the business who came over with Mystrata so i would have thought they would be people that the CEO should be working with to ensure that any strategic sector focus is correctly pursued. Whether those people are any good or not is difficult to tell as they dont really communicate directly with investors.
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