Pinned valuation:
With Microsoft entering the fray, growth outlook is highly uncertain. With Microsoft encroaching into their space, & if growth rates may fall back to a "Zoom inc" like rate - perhaps stabilising at 5% pa, and perhaps a 5% profit margin. I really haven't scratched the surface - There is an argument that backup with a non-Microsoft provider provides better redundancy - there may well be customers that wish to segregate backup form providers....
With a P/E of 20, & $23 M in cash, I come up with 5c/share for business, and 3 c/share for cash.
Really hard to value DSE atm, but the left tail risk does not appear to be priced in.
I was lamenting the price running away from me a couple of weeks ago, but the shares are back to the levels I would have initiated a position at.
Of course, there have been potentially material developments since, so I need to take some time and digest those before I make a move.
You are a harsh taskmaster @Rapstar indeed. In my mind, it is an obvious feature for SaaS providers to backup their client's data. To be honest as a small business owner myself, I'd always assumed data was backed-up until I started to research $DSE. However, $MSFT appear to be going further by offering to back up data from partner apps build on the $MSFT API suite.
My investment thesis rests on the view that some customers will always value a back-up outside their provder's ecosystem to further mitigate risk.
I'm sure I'll be in the queue of investors asking this question on the call today and, despite the market offering me my sought after top-up point, I'm now going to wait to see what unfolds. (Big thanks to @Valueinvestor0909 for his timely post today.)