Short Term Trading Week Starting: 12th Sept, page-90

Hey W4G

great to see one of the local guns - even if hired - analyzing SYT rather than this mere amateur.

The Verizon deal is more to do with Freeway, and not Dataflex, which you've used above. Even though both Freeway and Dataflex use the same technology, their space in the mobile market is quite different. Dataflex is for businesses who buy a package based on the number of BYOD their employees have, and comes at a fixed price depending on those employee numbers, whereas Freeway is for individuals to obtain sponsored data from mostly other app developers, like Clash Royale, or the latest football viewing app etc.

Verizon has a FreeBee Perks program, like your typical frequent flyer program, where data is the reward, and Freeway will now be available for Verizon customers as their reward method. Verizon's 100 mill customers now have access to Freeway, and the Freeway App will have access to other places that the rewards patrons can use for free.

To calculate how much SYT can earn requires basically two things. A guestimate of how many of them will use Freeway within the FreeBee perks program, and how much Verizon pay SYT for the privilege of using Freeeway. We don't know either figure, but like how you have done using Dataflex, we could be conservative and say only 10% of these 100M users, and $1 for each use as a very cheap starting point, which amounts to $10 mill.

But I don't think it is a stretch to increase the Verizon/Freeway users to 30% - 30 mill users - and use $2 as the base pay figure, resulting in $60. But the $2 is still cheap as SYT has multiple revenue streams from each download (CPI - Cost per Install; CPA - CAction; CPMB - Megabyte; licence fee; maintenance fees). So if a user downloads an app, say Clash of Clans from the Freeway, but on the Verizon FreeBee Perks program, SYT will receive a licence & maintenance fee from Verison, plus the CPA/CPA/CPMB fees from the content provider, in this case Clash. Some of these later fees have been quoted by SYT as much as $9 for one specific app.

Either way, I still prefer your figures, just not how you got there. But who's arguing on the method, when it is the final figure that counts . Hopefully though, some more experienced readers in the marketing scheme of mobile data may like to add/retract, or hopefully multiply.