I have held AD1 for quite a while now and see some significant changes in the business. Balance sheet excluded, I’m probably the most optimistic I’ve been about AD1’s prospects.

1.     Apply direct has a year and a bit on its major government contracts providing a steady base of core revenue on which to build.

2.     AoM continues to sign some impressive customers and the growth could actually continue to ramp as the HR tech space does actually have massive TAM and it sounds as if they have lined up a reseller for this and/or Applydirect to enter the US market. In the interim it’s kicking goals at home (Organically growing at 60% YoY).

3.     USS is continuing slow and steady growth through its underlying customers revenue increasing of which they take a percentage. Always possible they are able to onboard more utilities as well.

4.     New CEO seems able to make a presentation and talk the company up. Usually I wouldn’t care but if they want to do a micro-software- company roll up strategy then pumping the stock price does actually lower the cost of capital and facilitate growth. Previous CEO was never seen nor heard. I think when the company is this small and loss making a hype man is actually essential.

5.     With the rebate and delayed receivables this quarter should be their best ever (would guess ~$2mil rev) which is great! Especially if you need to build some momentum to get a capital raising off.

At a glance they are a SaaS company with $6mil ARR growing at 60% (some inorganic) trading at 3.5x ARR with a positive looking 4C ahead with some very promising announcements being hinted at. I’ve definitely seen some much more stretched looking valuations on the ASX.

I could definitely be wrong about most of this and internally the wheels might be falling off and of course do your own research but to me things have actually never looked better for AD1.