Spot on, @madamswer. To the impatient investors out there, it is...

Spot on, @madamswer. To the impatient investors out there, it is well worth thinking about the implications of 20% CAGR revenue growth and improving margins over the next 3-5 years, as guided by Janison on 3 November. Let's take the bottom of guidance (20% revenue growth for 3 years at a gross margin of 70%):

• Revenue in 3 years time (FY25) would be $62M.
• At a gross margin of 70%, that converts to a Gross Profit of $43.4M.
• Janison has guided to flat operating expenses this FY, but it would be reasonable to assume +10% pa growth in FY24 and FY25. Opex by FY25 would be around $27M.
• EBITDA would be around $16.4M. This should equate to cash generation before tax.

For those preferring to concentrate on profit margins rather than cash flows:

• The amortisation of acquired intangible asset values does not IMO reflect the value of those assets. Janison has an excellent record of buying assets very well, cutting their costs and growing their revenue. I prefer to add that back to profit. That is currently around $4M a year.
• The remaining level of capitalised software costs of $12.5M will be amortised over the next 3 years. Then only a portion of new capitalised software costs accumulated from now will remain in 3 years' time. Likewise, IMO, these investments have considerable value to Janison for much longer than 3 years, so the amortisation could be partly added back on. Note that Janison will not need to do anything to its platform to cater for the new worldwide contract with Cambridge University.

For these reasons, I am one of the patient investors who desperately hopes that there will not be any takeover of Janison. I am already losing two of my investments to takeovers that I do not want (PYG and NEA).