Stakk Ltd has gone through significant transformation over the last couple of years, and it may be starting to pay off with management guiding for ARR to hit $8.0m by December 2025.

What they do: Having now ditched the retail side of their business, Stakk is a SaaS provider of compliance and risk management tools to "embedded finance" businesses. Stakk provides tools to onboard and risk assess customers for fintech solutions who may not wish to invest in building their own tools in-house. Stakk makes money from charging a base monthly fee for this software as well as charging for usage by their customers, so that revenue will grow as customers grow. The recent announcements of Robinhood and T-Mobile signing as customers is good validation that there is a customer value proposition for both startups and larger enterprises.

With continued strong growth, Stakk will be able to turn cashflow positive within 1-2 years. They recently announced customer acquisitions will need time to scale up for Stakk to see revenue reach maturity. They currently rely upon $1m in government grants to stabilise operating cashflow, but with their current growth this is easily achievable within 1-2 years. Profit breakeven would soon follow, however I think it is highly likely profits are on a very far horizon as the business would probably re-invest rather than achieve profitability. Capital allocation here is key, and there is a good chance of future capital raises even after the recent $15m raise.

Finally, pure speculation on my part: given that the majority of their customers are in the US, if the company achieves a high enough market cap then management might push for a NASDAQ listing.

Valuation of 10x ARR for high-growth SaaS implies a share price of ~$0.039. However, I view the recent share price activity (~$0.052 as of time of writing) as being a positive thing. The recent volatility provides much needed liquidity and attention, and the ASX is very willing to suffer high valuations for high-growth companies.

Total available of funding DOU $1.45Mill = $1,000,000 + 450,000 (is that how funding will add up. R&D tax refund?)

DOUUGH LIMITED (ASX:DOU) - Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Friday up on no news. up 0.005cps 125% At 0.009cps

Straw platform here limited to 2cps.. So no Douugh allowable at 0.009cps

Trading App.

Disc: in my speculation port'

Market cap 9Mill

Low liquidity.

Douugh | Expand your investments with US Shares & ETFs

Douugh | Invest in Diversified Managed Portfolios from $1

For the speculators: Is this a pivot for DOU? ..Promised Lower interest Rate environment to put the nitrogen into these stocks!

Release Date: 27/09/24 

DOUUGH LIMITED (ASX:DOU) - Ann: Douugh to acquire US B2B fintech R-DBX, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum

Interesting to see this company pop into first place on the top companies list on Strawman (I'm guessing this is some sort of error in the system but it gave me a chance to have a look at the company briefly and watch their most recent presentation.)

The main problem the company is trying to solve is bad financial health and low financial literacy. It wants to help people save money, get out of debt, and invest those savings into assets that experience compound growth.

Quite an interesting app that is trying to position itself as an all in one personal banking/money/finance app. Add to this an automated system that learns the habits of the user to streamline processes. If it can deliver on every feature it is trying to add to its app, as well as market itself to a wide audience and get the user numbers needed, then this app could rival micro-investing apps like Raiz or Spaceship, or even be a next step up from those sort of apps.

I want to be clear though, it does a lot more than just a normal micro-investing app. It features investment portfolios for customers who want a simple investment solution. It also offers brokerage free US stock investing. It is working on a crypto exchange feature, and it also provides Buy Now, Pay Later features in partnership with Humm. They also have a global Mastercard partnership. Oh man they do a lot! Let's summarise some of it's product offerings:

• Investment Jars - pre-designed portfolios for investment
• Goodments - commission-free stock investing
• Crypto Jar - Buy, Hold, Sell and Pay with crypto
• Credit Jar - BNPL with Humm

Not all of these features are available yet and the app is still to launch in Australia and other countries, currently being open to use in the US. The business makes money through a few different channels including: FX, Interchange, Banking Fees, and Monthly Subscription. It's also important to note that the app is not a bank in and of itself, rather it is a wholesale Baas company. This will make it easier to expand the business into new markets.

The business has some lofty plans for 2022 and if they can successfully launch in Australia, release the extra features and grow their numbers in the US and Australia by a large amount, then I believe it could be a valuable investment. Some of their plans for 2022 are as follows:

It won't come without it's serious hurdles and competition that's for sure, but there isn't really an app I can think of that does all these things in one. The current solution for me is to have my CMC account for ASX shares, my US stocks are in Stake, I use a budgeting app for all my bills, and I use Swyftx for the tiny amount of crypto I have. If I was someone who used BNPL as well then I may also have Afterpay and Zip in use too. (Most of the people I know that use BNPL and are young have accounts with several apps to increase their total amount that can be put on BNPL.) If you add all those apps up then that could be 8 different apps including 2 banks, investing for both ASX and US shares, budgeting app, and 2 BNPL apps. I would definitely love a single app that could do all of my financial tasks. How realistic that proposition is is yet to be seen. Will Douugh be the first one to do it??

DISC: Not held. Also only did a very quick look into the stock and then went on a bit of a Andrew Rant-page style rant haha.

5,000 in revenue for March Qtr 2021 ????

$0.50c of revenue per customer ????

Trading at 2,280 price to sales. 

$5,000 revenue on 1.1mil of transactions = 0.5% margin on card transactions. They will need to increase TTV by 100x to get $5mil in revenue.

That $100 million dollar deli thats being reported in Bloomberg with $14,000 in sales is almost better value than this.

Douugh to acquire millennial-focused investing app Goodments

They still remain under voluntary suspension pending answer to ASX Query re Back door listing. The TH has been extended til 8/1/21

Next-gen neobank Douugh launches in the U.S.

Currently, $246mil EV for a company that hasnt even launched its product, questionable path to profitability. $6mil has been invested in developing the platform its EV now trading 41x that level with not a single sale or user established.The average EV/Sales for Australian fintech is 12.3, lets say Douugh with expected explosive growth that it can warrant an EV/Sales of 20. This would mean that at their current enterprise value, they need revenue of $12.3 million to be at a steep fair value for how undeveloped they are. Douugh's main income stream is card interaction fees, Douugh's ceo has stated they have been receiving up to 1% , they would need $12.3 billion in card transactions to earn $12.3 million in revenue. The average neobank revenue per customer in the UK in 2019 was $16.40, lets say generously despite earning no interest revenue Douugh has $30 in revenue per customer which is twice the industry average they would need 410,000 customers. To put this into scope, 250,000 users is about the size of Up bank (largest/oldest neobank in Australia). Additionally Douughs, current advertising budget is only $2,700,000 with a customer acquisition cost of $37.05 (mobile fintech average) this would deliver about 73,000 users. The company has a promising business model and its capital light model will allow it to reach profitability faster than competitors but clearly this is a huge pump with dump soon to come. In addition, taking into consideration the uncertainty of the feasability of their business model, competitive landscape, tight margins (competing with free personal finance apps) and publically untested/unreleased product.

Product is not overly revolutionary plenty of free personal budgeting apps & neobanks already available and far more developed. Few red flags for their execution, director knows how to make a quick buck from investors, previously ran a company that was trading when it was insolvent for numerous months and paying himself a fat salary whilst doing so https://ausdroid.net/.../30/yatangos-downfall-what-happened. The company is paying base salary of $841,200 to management collectively right off the bat thats 11% of their cash balance and 14% of the capital raising with the company bleeding cash. Capital raisings targeted at retail investors using fintech buzzwords to generate BNPL like blind interest and using platforms such as Equitise to raise funds, additionally it publically listed just for seed funding. If it goes under 5cents, might scale into an entry, an EV of $54mil / SP of $0.1 would be close to a steep fair value at this stage of its infancy.

Hey guys, some initial bearish thoughts.

1. Yet to see a digital or financial product.
2. Yet to see customers
3. Absolutely no comparison to Afterpay as a business, saw this mentioned in other forums. ??????? 
4. Proposed product features are easily replicatable. I saw nothing new as someone who works in the digital banking space. No moat.
5. Whole bunch of execution risks
6. Very competitive and barriers to entry are dropping so expect to see more especially when open banking arrives. My fav of the current Neos is Up. But they're all suffering because of Covid, losing customers.
7. Really not sure what BaaS means. Yet to see their business model in operation.

In saying that Dou will have achieved amazing audience reach just listing and likely up on all the other neos for getting their name out there.

Fun fact: Interesting baseline, one of the most recent Aussie neos Hay launched in Feb this year and is on the cusp of its first 10,000 customers. Hardly explosive stuff. Here's hoping Dou does better for holders.

This stock was listed at around three cents on the ASX a week ago today it is trading at 34c  This is a very Speculative stock and mostly  Hype but the market runs on about 50% hype 50% actual reality Being one of the first Neo banks to list on the ASX I think there's more hype yet  to come in regarding the stock