While you guys have been locking horns, I've been doing a lot of background work into this little company over the past few weeks. It's worth a punt around the current price in my opinion. I bought some the other week and some this week and hoping it hangs around current levels for a little longer so that I can buy more next week.
Just a tidbit of research... I contacted one of their NY-based clients on Monday (not one of the ones that they have announced publicly). I rang pretending to be a market researcher on HR practices and techniques!
They have been using 1PG since late Feb. In June they used 32 pools. They were restricted to 10 pools in previous months. I thought 1PG said clients typically started with 25 pools, so not sure why limited to 10? That company employs 21,000 people across the US. He said they've had pleasing results from it so far in the 4-odd months they've been using it and around 30 pools would probably be a minimum in future months given the results so far, depending on the time of year. From my calculations, even at 32 pools a month, that's 384 pools across 12 months which is US$384k revenue/yr from that client alone.
I'm just taking a stab in the dark here. 1PG had 33 annual enterprise contracts at the end of April. 1PG said deployments start with 25 pools. Assuming all existing clients used 25 pools a month, that's: 25 pools x 33 clients = US$825k/mth = US$9.9m/yr. Obviously that assumes all clients use 25 pools and no clients use more, so it could be more or less. Either way, it shows the potential just from existing clients.
The last quarter they had 9 new enterprise contracts and 2 upsells for AU$762,944 (US$581,889). Not considering the 2 upsells, that only equates to US$64,654 for each of the 9 new contracts or US$5,388/mth. That's barely 5 pools a month. That's really low. I think there's a lot of upside to those contracts.
