AD1 Holdings focused on SaaS – recruitment, mentoring and CRM.

Watched a recent presentation where they highlight SaaS growth from 31.5B in 2015 to 170B in 2022 and $430B in the next 4 years. I hate these kinds of figures, especially when those presenting have an almost minuscule component of this. It almost made me stop there. 

The business has a credit card market cap (ok not quite ~20M) with 600M share on issues. Large board and management holding of circa 35% and big incentive with 245M unlisted options at average weighted exercise of .19c (about 5x current share price)

The three offerings are seeing decent growth and do have some decent customer with strong renewal rates. Cost of acquisition vs cost of retention are on the right side of the ledger. 

While I like their thinking, and it is important for growth, the similar products may not cross sell as well as they expect. 

The business has made several small acquisitions, they are seeking organic growth. Cash receipts over time have growth up and to the right, aligned with ARR, cash has been LuMpY. 

One thing that concerns/thrills (exaggeration/ sarcasm) is the looking overseas. This can be a place for capital to go to die. 

This is a competitive market, and the big players can be hard to take down. There are opportunities in selling the value, but it needs to not be a cost play. 

Gawd, here is another one that I end up at interesting, but happy to sit for the moment on the sidelines. Will continue to be an observer.