Is this still achievable? "1-Page's estimated operating cash...

Is this still achievable? "1-Page's estimated operating cash flow in FY16 is $10.6m"



Canaccord Genuity initiates coverage on the stock with a Speculative Buy rating and $4.70 target, which represents 85% upside to the current share price. This is a global initiation as the broker's Australian arm launched regional coverage in August last year.

The broker note US enterprises have been receptive to 1-Page products, with over 300 companies in the active sales pipeline. The company expects 30 contracted paying clients by the end of FY16. 1-Page seeks to monetise customers immediately, charging to trial or set up the curated talent pool, rather than making user growth a priority.

The company is based in California and uses its BranchOut business, acquired in 2014, to formulate a proprietary database. The sourcing service based on this asset is disruptive and beneficial to HR managers and also difficult to easily or affordably replicate. BranchOut uses 820m profiles built within the Facebook platform.

The outcome is a database of candidates for difficult-to-source jobs at an affordable cost. The broker points out that the company does not “scrape” data but only uses publicly available data.

Canaccord Genuity understands that the recent partnerships 1-Page has engaged have gained significant traction in the last few months and should start delivering meaningful revenue in the next couple of quarters. The broker expects 1-Page to generate over 95% of its revenue in the short term through the Sourcing platform but there are two others, Innovation and Assessment which the company is also commercialising.

The Assessment platform provides an automated mechanism for assessing candidates and Canaccord Genuity forecasts revenue to grow to $1.2m in FY17. The Innovation platform aims to facilitate innovation within large corporations by providing a forum for staff to offer ideas and track the success of these initiatives. The revenue stream is expected to increase to $800,000 in FY17.

1-Page's estimated operating cash flow in FY16 is $10.6m and the company has suggested a 60% reinvestment rate based on revenue growth of 100% per annum in the short term. Canaccord Genuity considers this reinvestment important to further growth, but notes the low costs in the business which provide leverage to the capital deployed. Positive free cash flow should be in evidence by FY17, the broker maintains.

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