RE:RE:Your perfect xmas present from Loop?Agree on NTT. It's huge. I actually love that the Canadian retail market has basically ignored it because they haven't heard of them. It derisks the investment and gives me the utmost confidence to continue to add at basically the same price.
re. the deals, I'm in the same boat. I'd want AT&T next - their consumer business is in trouble and they are very motivated to deliver breakthrough solutions on the enterprise side. That would be huge.
I like the travel lane as well - Disney we've spoken about - but an airline or cruiseline would be fantastic especially if it rolls in the martech product not just contact tracing.
re. the economics and financials. I think they would be crazy to report any numbers right now. It's too early and the market wouldn't know what to do with them. Is $500k in revenue in Q4 a big number? $1m? 5? These deals are all still very early and will bear fruit in 2021. I don't really care about the Q4 revenue and share price today, I care about it 12 months from now.
BUT...
If you track the breadcrumbs on the financials it can give you a sense of what the deals are worth.
- They've told us what the YourCBD store deal is worth - 550 stores, priced per terminal, monthly fees - it's somewhere between $500k-$1.5m for the next 12 months and if they add the martech solution you can double that.
- They've told us what the revenue implications of signing up every customer in the Telus IOT marketplace (pipe dream obviously) but it nets to ~500k per client for the base service and can go to 4x that for the Martech product
- We know how the economics of the bubbles work for the click through and merchandising side, we don't know the installation and management revenues there.
- Then add the NTT deal, shopify, vend, the bubbles and so on and you can presume a revenue floor that is very sturdy for next year.
- These AI and Predictive analytics businesses get somewhere between a 4x (no name pricately held AI co) and 50x (Palantir) earnings multiple.
Can this business do $50m in revenue next year? Of course it can, that's $12.5m a quarter. If it did that it would be anywhere from 30% undervalued today to 3000% undervalued. I think they will do far more than that by the way...
Anyway, back to cooking Sunday dinner. Looking forward to what's ahead with Loop!
GLTA