RocketDNA Ltd.

ASX:RKT

RocketDNA Ltd.

ASX:RKT
TradeAdd trade order Follow Unfollow Set Price Alert
$0.007 (-12.5%)
Last close price
--
Rank
0
Held by
4
Followers
TradeAdd trade order Follow Unfollow Set Price Alert
Reports My Report Forum Investors
Forum Topics RKT RKT Investment Thesis
BkrDzn
one year ago

@Chagsy this is my thesis in a nutshell

d718045de9452da63b499c3a99e62bed11dd28.png

c222640027902c908ee6df48d3c675f10ef9a8.png


But on a more serious note. I got a very cheap price from a distressed seller on an okay business with enough runway to get to break even mid this year. The unit economics seem real and are decent so its has the ability to scale with steady wins. A mate in the mining biz says surveying solutions that cos like DLT provide are being increasingly outsourced which means growth potential is real. Can it scale enough to be well priced as a listed entity? idk but at $0.005 entry I get a call option to find out. Probs something that should be a private co or swallowed up by a bigger group to form part of a bigger solution package. I do note that whilst my fund is large in co, its is tiny in my fund, buyer beware.

15
Chagsy
one year ago

Thanks for that. My big issue with the latest announcement was their use of the term SaaS and ARR which implies an open ended subscription to their services. In fact what they lump into the ARR section of revenue are relatively short, fixed contracts of 2-3 years. The implication is that these will be renewed but it seems poor form.

thanks

13
BkrDzn
one year ago

I get that point (and do not disagree they probably shouldn't use that terminology) but that is how most non-retail product SaaS/ARR works. B2B/enterprise stuff is often contracted for Xyrs at X rate so considered "recurring" despite having a finite contract life, whilst more retail type products like a XRO sub is open ended but is structured opt out so any customer being able to cancel any month with little notice. So despite appearing perpetual, its technically shorter terms than a B2B contract from the likes of a DLT. So ultimately all that matters is knowing churn/renewal rates are key in either situation and preventing churn is a case of continually proving the service/product you sell has adds value.

11