ACE just reported.

Result

• Revenue +25%
• EBITDA +35% to $2.5M
• Cash burn of $3.6M. Still have $21.2M in bank
• NPAT loss of $0.2M

Outlook

Full year revenue just over double half year to $49-51M. EBITDA $4-$5M.

Expenses have increased and will continue to be elevated as they invest for growth. They have taken on additional sales people in UK and US and are setting up 24/7 level 1/2 help desk.

My thoughts

I like that it has tailwinds with OS expansion looking promising. I don't know what their revenue could grow to. I feel like costs might keep increasing and they will keep the business break even for the foreseeable future. They have $21m in the bank so it will be easy to keep using that to go for growth. They are also capitalising at least some R&D.

I'm interested, but not at the current price. It's forward EBITDA multiple is 35. I'd be interested closer to 90c.