Rhype is a wholesaler of cloud solutions to local IT resellers. Their platform, PRISM, manages customer subscriptions for things like Microsoft Office 365. I'd recommend reading the latest annual report to get idea about the specifics, but for me the key things to note are:

• Strong customer and sales growth (net revenue up 36% in FY19)
• Substantial industry tailwind
• Profitable (Net profit = $6.2m), and even pays a small dividend.
• Strong balance sheet -- zero debt and $25m in cash
• Founder still on the board with 2.7m shares
• CEO with 5 years at helm and over 3.8m shares
• past 5 years of growth has been achieved without any debt or material increase in share count.

With 3/4 of sales coming from the Microsoft partnership there is considerable customer concentration, and this is a competitive space. Nevertheless, rhipe is well established and appears to be a valued Microsoft partner.

The expansion into Japan will weigh on profits in the near term, and costs have ramped up as the company invests for growth. For FY20 I'm expecting about $60m (25% growth) in net sales but only ~$6.5m in NPAT (5% growth).

That puts shares on a forward P/S of ~5.3 and a PE of 48. That's high for low bottom-line growth, but Japan represents a significant opportunity (5x the size of Australian market) and they look to be well placed to exploit the opportunity with their strategic partners. See my valuation for more.