Snazzy New Website

Certainly looks better than the old one which looked like it had been created 15 years ago (which might not be too far off given they started operating in 2007). 

Thanks to the Strawman community, namely Wini, MrKrabs , Noicewon11 and INTJ for putting these guys on my radar. I started researching into the company months back and have been pleased with what I’ve uncovered so far. 

As mentioned by some prior: 

• Very impressive client portfolio. In Feb in their quarterly report new logos included Chubb Insurance, Comminsure, Transport NSW, Hireup and Life without Barriers. These are great companies. 
• They seem to have no churn. They provide updates on this in reports consistently. Latest mentioned no clients lost. 
• Nearly all revenue appears to be recurring. Yes, they received tax incentives for their R&D and COVID-19 stimulus support, which is noted (for a total of about 431K), which we will clearly not include in ARR. 
• Clean balance sheet with $1.2M in cash. 
• Valuation very reasonable. It looks like their headed for a close to $2M which we can pretty much consider ARR. That’s a P/ARR just shy of 3 consider today’s dip, bringing the MC below $6M. 
• Insiders keep buying on market. I love to see that. 

The recent half year report was a little light on growth at 5% (discounting of course stimulus received), but they claim they will make up for it with a very strong pipeline now building up. 

Things on mind that I am keen to see and hear if you guys have any opinion on: 

• How are these guys finding new clients? Is it all referral based? They don’t appear to have anyone in sales/business development as I can see on their LinkedIn or don’t appear to have hired for such roles in the past. They will probably in a near future reach a plateau if the growth has been only organic so far. I’d love to see the hire for growth. 
• Very keen to hear what they have to say about the TAM on Climate Risk Analysis, when they will be ready to deliver to market, and how it will actually work. 

Today’s dip of 14% which is certainly not uncommon in stocks like this makes it a very appealing opportunity.