I thought the AGM came across very well. Feels like Kevin has a really good handle on how to progressively move this company forward and the transparency in the Q&A was refreshing given the written updates are quite sporadic.
The key points of interest are the UK client renewal in the near term, future expansion opportunities in the UK-Europe market, the confidence that a new revenue contract will land and the flexibly that will give the company to pursue faster growth or a strategic buyback, the take up of the new products and how much the new partnerships embed 9SP in the US ecosystem.
I’ve never thought a US listing was on the cards - you need a decent revenue base to pull that off and it would have to be growing quickly which the company is far from.
At the end of the day it’s all about revenue growth, so hopefully the company can execute a couple of new deals and get the momentum up and attract a buyout from a much larger company that wants a global open banking platform.
One interesting thing to know from Kevin would be what kind of valuation could the company attract under this scenario - what multiple do you put on the revenue? Obviously it wouldn’t be sky high due to the past, but if revenue got up to $10-$15m - do you put a 5x against it for a $50-$75m valuation? Hmmmmm
9SP Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
