I think that 2.5c call is pretty extreme given what is known about this company. We know that they are continuing to grow QoQ. We know that they are churning through subscription revenues which have not been completely offset by SP revenues yet but once this churn is complete they will be sitting on stable revenue base that is growing by double digits. We know that costs are under control. It is also likely that they will raise again to ramp investment in marketing and the platform technical capabilities. So the questions I guess you are posing is a) When will they need to raise money based on what we know? b) How much will they need to raise given what we know? and c) How much will this cost me as a current shareholder?
Here is my view on these questions. It is a simplistic analysis but I also think it is instructive given the current price relative to scenario outputs below.
Add to My Watchlist
What is My Watchlist?
