Interesting Tid BitGood afternoon all.
I found an interesting tid bit in the company's most recent MD&A:
"The Company’s focus on subscription revenue resulted in a decrease in perpetual licenses and one-time training and professional services revenue of $0.28M, from FY20 to FY21. A pattern of cautious spending emerged at the end of last and beginning of this fiscal year as CIOs dealt with a series of emergent challenges related to COVID-19, including budget uncertainty. More recently, CIOs began to act on the need for reliable remote cloud collaboration capabilities to keep employees productive from any location in the world."
I understand this to mean the company is observing organic growth. High recurring revenue company's like this should be valued closer to 10 times revenues for the predictable nature of sales. I would like to see value-add partnerships announced with logos that can move the needle, since the company has stated they expect growth to accelerate in the second fiscal half of the year. The start of the second fiscal half begins October 1 - therefore insinuating there are material partnerships coming if this is in fact true.
Happy long weekend to all.