It's worth taking a moment to soak in some of the detail in the State One report, in particular the expected percent contribution of Ohm to Buddy's revenue. Not only is the figure projected to be high (64% )in FY18, it is even expected to increase to 78% by FY20 – despite the revenue from Parse-related data sales only slowly coming online.
Of course these are projections, not gospel, but they are still worth noting if someone who presumably has some understanding of the business thinks this is a credible scenario.
There are a few things to consider from this IMO:
Apart from that, the report also projects a dividend paid from FY 19 – a bit of a paradigm shift for me, and it will take me a while to get my head around thinking of Buddy as an 'income stock' (yes, tongue in cheek). Still a very long shot and lots of water under the bridge, though. And if in doubt, I believe and hope they will invest their money into growing their business.
- Take a moment to appreciate just what a giant big fat gorilla-sized rabbit Buddy has pulled out of the hat when they created Ohm. Respect.
- Buddy's expected revenue in the foreseeable future is heavily reliant on Ohm's success – or otherwise
- Ohm will evolve. We haven't seen half of what it can do yet.
- Buddy is a young, innovative company, and they may well (and I think they will) come up with another winning product or two like this, in which case all bets are off
Anyway, just a few points to consider. Have a nice weekend everyone.
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