Here you go @Jen7575 and @aqua2572 – unfortunately only had time for a brief one.
Quarterly highlights:
- Fantastic result from the Quarterly. If you add the missing month of revenue from the Thor contract (~$165k), Buddy would have hit $1.05m (exactly in line with my projections).
- It is important to remember that there is always going to be a lag between an ohm installed and revenue hitting the books because if, for example, an ohm is installed in the last month of a quarter, it won’t generate any revenue for that quarter.
- Operating expenses down from last quarter (excluding additional expenditure on more ohms) – shows that the company can keep costs down making profitability increasingly likely.
- Growing traction - this is a versatile product that works everywhere, with everything (the expanding Works With Ohm is a massive product value add):
- Upsell now at 35% spending 98% more
- Churn remains low
- Resolved all software issues
- Resolved backlog
- Works with ohm continues
- Multisite growth – showing customers like the product:
- And probably most significant, Buddy is still progressing its major tender bids, the signing of which could immediately make the company cash flow positive :
Projections:
- Note, none of my comments/views/projections account for Buddy landing a major tender, which will be “very meaningful for [Buddy]”.
- We know that this quarter saw more Ohms installed than ever before, and that this next quarter (Now-December) is going to again see more ohms installed than ever before (DM’s comment). In my view this will put the company at approximately 500-600 Ohms installed total, with installations then at a rate of +250-300 per quarter [excluding landing a major tender].
- With Thor revenue, this will put the company at about $10m revenue annualised.
- Whilst that growth puts us well on our way to the fabled 10,000 ohms / $3.00-$5.00 share target, what we really want is for the company to be installing at the rate of 500-1000 ohms per quarter IMO.
- In my view, once global distribution kicks in (see timeline below) this will be absolutely possible.
- Once the market realises how quickly this company is growing, IMO we should see a valuation based on a minimum 12, if not 24 month premium to current revenue rates.
Updated distribution timeline:
Upcoming News:
- New Thor deal
- Major tender landed
Other:
- $19m cash on hand.
- $100m EV at current prices.
As I have always said, Ohm is a money printing machine, as long as they can sell the product – which this quarterly shows they can, this company is going to make a lot of recurring revenue.
I continue to add to my position whenever and wherever possible. The market cannot sleep for much longer.
