Every time I watch each quarterly, the more bullish I become.
Its incredible to see the growth MOM & YOY, specially with the processing and now acquiring. After listening to PC, the acquiring business opens as a sub platform and will generate major profits and revenue, bringing in bigger names and bigger businesses.
Originally, I had a revenue run rate this FY at $27-$30M, this is already exceeded this. We are staring down the barrel of a $70M year over the next 12 months & $100M within 24 months.
New investors may look at the balance sheet and assume the cash burn is rather high, this is a misconception as the cash burn is for a further 90 team members (from 140 to 230 now), along with additional funding to visa and MasterCard to get the acquiring business complete- The money and profit being generated is being utilised back into the business to grow are rates we could have only asked for- well also begin to see major returns for this spending which I’m sure we’re all excited about.
Looking at the above, in my opinion this is where I see Novatti being across the next three years (banking license aside, purely payments and processing)
12 Months - $75M Revenue- $250M MC (PS of 3.57) .75c (this is without being cashflow positive as suggested in the webinar, if we’re cash flow positive, likely see $1.
24 Months - $100M Revenue - $355M MC (PS 3.56) $1.07 (again if cashflow positive as suggested, this could push much higher)
36 Months $150M-$165M Revenue -$532M MC $1.58
The above doesn’t take into account Emersion, Banking License, Major name signings from June onwards in acquiring, further acquisitions, surprise growth quarterlies & re-ratings in the payments space - as it stands, the Fintech and payments space has hit a bottom regarding evaluations and multiples, eventuality a re-rating will take place in the industry & we’ll see a true evaluation for what we have here with the licenses that are held by our investment.
With a team of 230 spread across the company and APAC, we’re on the verge of seeing an absolute weapon of an offer with Novatti, it shows management have the competency and product to take Novatti to the next level- remember, it’s extremely hard to grow at this rate in the millions in this space, this showcases the play is the right one.
All my opinion DYOR.
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