I was a previous holder of EVS however sold out some time ago based on disappointing revenue growth and an apparent inability to control growth in expenses. I have not followed EVS since.

I followed the forum post link by @Remorhaz and watched @Strawman call EVS a buy.

I thought it best to go back and take another look at EVS.

Revenue growth FY23/FY22 8.3%.

Loss before tax has remained in the -$11M to -$12M range since 2021.

Q1FY24 ARR growth 10%.

The Q1FY24 Outlook Statement (below) was as vague as they come:

So, after adjusting the EBITDA and capitalising expenses and based and the exit ARR for FY24 they should be cash flow positive.

They had $8.2M cash at 30 June 2023. Capitalised development costs of $5.8M in FY23 increasing at 55.4% pa over 2 years. The cash balance will get very slim unless they can cut costs or greatly increase revenue.

My valuation model indicates EVS as currently overvalued.

I don’t see EVS as a company you need to be invested in at present. There will be plenty of time to jump in later if they manage to improve the financials.