Swift inflection point

New year felt like it need a new thread!

Thought I would share some thoughts on Swift and why I think it it at or nearing an inflection point.

Share Price at close (09/01/2024) - 0.012 cents
Ordinary Shares on Issues - 646.57 million
Market Cap - A$7.8 million

Revenue growth
I am sure the regulars here noticed it, but the slide below from the AGM presentation is important.
This finally gave us some insight into when the recurring revenue might start to ramp for Swift.
Essentially it was a breakdown of rooms with Swift Access installations by quarter.
We can see that in the December qtr, they were expecting to install +448 rooms for Mining & +1,843 in Aged Care.
If achieved, this would be a total increase of 2,291 rooms installed with Swift Access rooms for the Dec quarter.
That is a 28% increase quarter on quarter for Swift Access rooms from the September quarter.
The upcoming qtrly won't show all these rooms converted to cash with installation / billing cycles.
A portion will though, all of it will appear in April qtrly, along with +730 Swift Access rooms to be installed.


Margin growth
The other key outtake from the AGM presentation was the continued margin growth.
They provided a breakdown of the services (Foxtel, SA, both, etc) and benefits of Swift Access on margins.
The slide below suggests that with Swift Access growing, margins have further to expand.
Maybe we get another 2-3% improvement in gross margins by June?


Debt position
As had been noted previously, we are now in a much better position following the conversion of $261k of the debt by Pure, combined with the sale of $321k in MXO shares. The $582k likely comes straight off the debt balance and means any future payments are making more of an impact on repaying the loan and not as much interest.

Director Purchases
At the same time as the debt conversion, Swift Directors purchased $100k worth of shares from Pure from the shares they converted. We all know directors only buy for one reason and they know a lot more about what 2024 looks like than we do. Fair to assume they think an inflection point is close as well, so loaded up.

Anyway, nothing ground breaking in those observations for those who follow Swift closely,
The final slide from the AGM sums it up well, but an $8m market cap on $14m ARR is laughable.
Won't last much longer I expect!!


Would welcome any thoughts from @stillade, @scottm or others who might be following Swift.