Other than what you have learned, if you have been following the company announcements, you will also learn that in this financial year, the government will be paying the company $5m for service to 100,000 beds. According to the CEO, the Australian operation breaks even at 30,000 beds. That means, in this financial year, the Australian operation will be profitable. And since the release of the adult app, every facility that has used it has not discard the app. All of them have renewed their contracts, so no churn rate. So that means, as far as Australian operation is concerned, PCK is profitable already from this year onwards. Any extra beds, plus when the homecare version is released, all of those take ups will go to the bottom line. And then, of course the children's app to come which will further help the bottom line. PCK has a very low fixed overhead, a monopoly providing a necessary service.
All PCK will do now is basically going to rinse and repeat the above process in each and every country it enters. Some country, the overhead will be much lower because it can operate out of a base. Like in UK, PCK will have a base there to service UK and Europe. That means, once UK is profitable, any other income from the other European countries will basically goes right to the bottom line.
I hope you can see the path to profitability now. OR just think Spotify. But unlike Spotify where subscribers might not renew, our adult app is truly one that will gets renewed until the subscriber dies. It is truly a 'until death do us part' kind of business.
As for the market cap, again, if you have been in the market long enough, you would know it is always forward looking. Based on all that has happened, and the simplistic vision I write above, the market is currently expecting one of the rinse and repeat to happen in UK as we have entered that market already. If the UK NHS comes to play like our Federal government, then boom! the market will look forward even higher and so on.
Hope this helps.
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