The Power of Network Effects & Why It Matters, page-6

There is a long journey ahead for 1ST and I am looking forward to watching how it plays out.

The faster ARR grows, the higher the multiple for 1ST, the higher the valuation and thus the higher the share price.

Here is a comparison that might interest shareholders:@Malcolm1209,@Adm1,@stardestr0yer,@JayMarket,@stormer,@Marketwatch123, @ElonMusk,@NotthatWarren@retiredyoung

FLN is also a platform company, and in 2013, it had a valuation of $700m off revenue of merely $18m, an extraordinary 39x revenue multiple.

That was achieved with ARR growth of 77% on the pcp (FY12 revenue of $10.6m and FY11 revenue of $6.5m).


Comparing and contrasting the revenue profile of FLN above with what 1ST may be able to achieve is fascinating.

There is a case to be made that 1ST will achieve in FY20 what FLN achieved in FY11 ($6.5m revenue).

There is also a case to be made that 1ST in FY21 could achieve what FLN achieved in FY12 ($10.6m revenue).

I think this situation is not only possible but likely to occur.

Thus, in a few years' time, a $1 or $2 valuation for 1ST is more than possible. At the very minimum, we will be looking at 20-40 cents

Ultimately, If 1ST becomes an ASX SaaS market darling, FLN shows that a $500m to $1 billion valuation for 1ST is possible.

In 2022/2023, there is more than a chance that @JayMarket will be sitting on an island.

John Plummer will be in Monte Carlo.