Hi Tj, thought I’d wait until I had a bit more time to explain this one, the beach was great over the long weekend and I 4WD every bump and dip I could also!
With regards to your query, I think it will be easier if I lay it as below:
The company is looking to have a run rate of US$24m by years end (AUD$31m approx), this will include the 125 clients who will be at various stages of rollout and contracts. If we were to check the OCT/NOV/DEC quarter it could be a case of US$1.8m in OCT, US$2m in NOV and US$2.2m in DEC, so when we were to look at Jan-March in the next quarter I would expect/want to see increased earnings in this quarter as more of the clients move through the expand part of the model and their contracts. That’s why I think looking back at earnings would make it hard to chase a fair entry with regards to the share price as they continually increase this run rate.
Now these earnings don’t include other partnerships that they are discussing right now, because 1PG are the only people who have this connection graph that other companies can plug into. These companies want the product as a sourcing tool and they will on sell to their own client bases and only take a 30% clip, this will be another resource/product they can offer their client base, some of whom have huge client bases and relationships already. Think of companies like ADP or similar style companies who offer a large range of products/services in this space, they are actually doing it now with UST Global as we have spoken about recently.
I hope that helps, maybe we will find out soon enough about these sorts of on selling partnerships they are looking to establish, it makes perfect sense when the likes of UST can just open the door straight away to so many Fortune 500 companies, imagine what the others will do for 1PG too
I also saw some talking about the none naming of the Financial client just signed, to me this is no big deal as I know a fair few holders here (you know who you are) are well versed in this sort of "commercial in confidence” stance by some clients/customers/partners, while a pain in the neck it’s also a necessary evil with some clients as they like to keep what they are doing a secret from their competitors. It will eventually come out as people move from one job with an institution to another and it becomes such public knowledge that they will let go with the commercial in confidence stance of who they are at least, maybe not exactly what they are doing with the platforms etc.
Anyway it’s all good!!
