$5m profit valued at say 30 times earnings gives a MC of ~$150m.....which is where we currently are
look I'm not trying to be negative, and with revenue growth perhaps you can sustain a high PE, but note that expenses have also grown (arguably faster than revenues).
Even with that, the biggest issue for me is the disconnect between ACV and receipts/revenues - mgmt need to re-calibrate that number if they want the broader market to have confidence in it because based on their definition, it should be reflective of what the business can generate from their clients now (not potential in 2 yrs time)....that ACV number made sense in ~4Q20 (you expect to collect the amount claimed at that point in the next 4 quarters), but since then, it has been disconnected
Anyway, not implying this is a poor company (they have certainly grown their business without burning tonnes of shareholder cash), and gaining traction, but I think investors should be realistic what it is worth given the returns they are generating.....either reflected through the cashflow or the official accounts....ACV IMO cannot be used to value this company
