Last day to invest under $3!, page-14

@Pat07350

I invested based on the growth profile (true that share price did not grow in the last 1 year but reasons are known being lock downs and terminal outage and consequent shorter report and so on).

You can see gross profit kept on increasing >20% every year (except 2020 due to covid, picture is a bit below in this post) but did not result into operating profits because of the increase in operating expense (being a growing company). I believe they are very close to the scale (being 63K+ on their own and 90K+ with Bendigo) where operating expenses will decrease as a % of gross profit (faster).

It is all subject to execution capabilities, from all the avenues and information I have seen - Tyro is efficient and transparent and I did not see concrete evidence that Tyro is inefficient (posts on facebook and opinions by shorter shows that few customers did not receive prompt support when the incident hit thousands of customers, Tyro did not blame their hardware partner - just took it on the chin and moved on with restoring).

Growth avenues
A. terminals will keep increasing (before terminal outage issue, Tyro indicated 1000+ applications a month, it may suffer in short term but will return considering their usual Aussie focused support structures).
B. Bendigo is the start, once it is integrated well - Tyro will gain confidence and other small banks are likely to take similar opportunity to handover terminal and payments processing to Tyro (save on expensive support structures and compliance) and receive gross profit share from Tyro.
C. Tyro has a full banking license and received an award for 'App feature to approve a loan in seconds' (Tyro is secured because it knows the daily takings of customer and Customer has benefit because it is fee based and no exorbitant interest or hassle and repaid automatically from their daily takings on Tyro terminal). This was growing quickly but impacted by Covid, would start contributing again for Tyro acquired merchants. Banking side of Tyro is something usually ignored but then Tyro is only interested in providing banking services to merchants (in a way - their banking services, loans are additional features to their merchants) and will start showing +ve impact when merchant count cross the threshold (like 100K).
D. Ecommerce payments and other payment types are available but not used at scale (with transaction values are in few millions), Tyro informed that about 400 merchants already adopted (by the time 2020 report is published) and generated ~10m transaction value. This is not much but will change since Tyro is fast-tracking this option (with new features).
E. Tyro is investing in innovative ideas like me&u (which uses NFC to integrate menus and payments so restaurant staff don't have to carry menus and so on - all selection, delivery, splitting amounts and payment can be done with customer's mobile and NFC terminal on the table). Obviously Tyro is the exclusive payments processor (and has an equity stake in me&u). I expect Tyro to keep looking for ideas in the industry.

With all the above, the cash flow and EBITDA are bound to improve once operating expenses are stabilized (and I believe stabilization is already happening).

You may disagree (and may not see the business value at current market cap), I respect your opinions and please DYOR.