I hope the farming has been enjoyable and profitable. I feel we are in a very funny place as far as the economy goes at the moment. The word squeeze comes to mind and I really thought that there would have been more property foreclosures with the cause and effect knock-on of interest rate hikes. Luckily for Wrkr there is the opposite effect of the rate hikes replenishing the Wrkr coffers with the float interest moneys.
Definitely great for us investors witnessing the share price rise. I guess the simple explanation for that is more investors are more confident with constant revenue increases over the recent quarters, along with the REST pilot currently underway with hope of a successful pilot transforming into 1.4 million members/employees onboarding to the Wrkr tech. (WrkrOne Platform).
A done deal with REST will be a very welcomed announcement!
I feel the tech capabilities of Wrkr, in so much as operability and value for the company, has already proven its worthiness now as this is the tech that Link Group has signed up for with the Master Services Agreement (MSA). This is the tech REST are piloting and of course another large superfund, ART, has been using similar Wrkr tech, although under a different legal structure, for many, many years now and increasing its services as noted in recent announcements and webinars.
I have been fighting with my old investment ways, looking for the “blue sky” so to speak, but I’m finding Wrkr as an extremely “quantifiable stock” now. This attribute may not leave much to the imagination for market hype, but having these quarterly figures, showing reasonably good gains quarter upon quarter and expenditure telling of coming possibilities, makes for a “steady growth” in the company market cap without wild and unreasonable surges, keeping in mind the major expense of the main tech backend build is done.
I do believe you have a valid point…. The superfund market where Link Group oversees administration and maybe a few other majors outside of Link Group’s administration could be observed as “once conquered” Wrkr’s market and revenues become limited or “capped” as you put it. Looking at Wrkr’s ARPU ($7 - $8) and the potential to sell the Wrkr tech to a few or all of Link Group’s major superfunds, the “capped” revenue looks extremely attractive. I would argue Wrkr has the potential to move from its current revenue of approx. $6 - $8 million to something near $46 - $48 million. Quite a multiple!
I recall you pointing out the Gov. reform and mandate in PayDay Super. Once Wrkr achieves the figures above, those figures could very well double in value or more and leading up to this point in Wrkr’s evolution I believe Wrkr will be in a position to solve a technical problem for the pay clerks of most Australian businesses. This may be what you’re pointing out as a “true value proposition” with tech solving a real issue. Trent mentioned bringing the Pay and Contributions process inline. These services would be rolled out with the superfunds services platform to businesses, allowing businesses to access these additional services on their dashboards as an upgrade.
I would view the “capped market share” of Link Group administered superfunds and potentially more superfunds using Wrkr’s platform, as more of a base or what I’ve heard others calling a “flywheel” where Wrkr generates more than enough revenue allowing the next phase to launch from, attracting more and more businesses to subscribe/upgrade to services already in place on their systems.
I guess all of these types of markets are finite and are shared between the strongest and best technology companies. Transforming your completed and current business “platform” into a giant “flywheel” generating much more business from within it or into something that I would describe as a “giant magnet” is nothing short of brilliant. I imagine this model would have limited opposing forces or resistance for any business wanting solutions with the confidence of knowing that those solutions come via their superfund platform, allowing trials or upgrades to additional services without operability or trust hurdles to overcome, IMO is the best of the best!
Quite a bit of my post is pointing out opportunities before Wrkr’s management that the market currently is aware of. Management appear to be positioned and aligned having the tech build completed, piloting commenced, agreements in place with world class cyber security, Transmit Security and I think more than enough work currently that the Wrkr team can handle. HSBC, REST piloting and other work is definitely a full house, I would imagine for Wrkr staff.
So maybe for some opportunities to move to agreements, I believe we need the REST pilot completed (feeing up staff and real confirmation of the next phase) where one spoke of that “flywheel” scenario is put in place and on display for other superfunds to inspect. I believe the dominos will start to fall and there will be a relief sigh from all.. including investors, but pressure will be on the Wrkr team possibly more so than ever before.
It’s good to hear your concerns and it’s also good to hear your thoughts on the Wrkr business generally as a good business with the “smart guys and gals” in it ,making Wrkr a reality!
I believe the Wrkr team have proven they definitely have what it takes to make Wrkr a “best of the best tech Co”.
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