Pinned straw:
Well, it's finally happened: they are cash flow positive for the first time.
I'm no forensic accountant so there could be a bit of fudging going on to get the headline they need.
To briefly re-cap the thesis: its a classic SaaS land and expand strategy; the key is to onboard contractors with a test module and/or site and get them to see its merits and utilise in other projects.
The contractor ARR has experienced a CAGR of 38% over a three year period.
Forward looking indicators look rosy:
The less good bits were the reduction in NRR to 99% (I am impressed they continue to report this and not cherry pick the metrics that show them in the best light). unless this returns to the 115-120% they have previously achieved they are in trouble.
They have $2.3m in cash......eek!
Full announcement here
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02868832-2A1556728
Not held, patiently waiting to enter if the thesis continues to unfold.
Broadly agree @Chagsy.
Good to see them hit this forecast milestone. They should be good for Q2 as well but Q3 & Q4 will be more of a challenge.
That said, the trend is positive.
A couple of lingering concerns for me. They are still low / sub scale at FY24 Rev less than A$7m.
They have held costs flat for the last few years since the market switch from growth mode to profit / break even mode a few years ago. It's not clear to me how much they have underinvested in their platform as a result (if at all).
Still, they look to have averted a dilutive Cap Raise for now - let's see if the share price ticks up and they pass the hat around to fund 'growth initiatives'...
Disc: Held