Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Think Research Corporation THKKF


Primary Symbol: V.THNK

Think Research Corporation is a Canada-based company that offers digital health software solutions. It is a provider of cloud-based data, knowledge, and software solutions primarily delivered as software-as-a-service (SaaS) to healthcare delivery systems and the practitioners that they support. Its operations are organized into three lines of business: Software and Data Solutions, Clinical Research, and Clinical Services. Its SaaS solutions help patients find, navigate, and connect to health services across large governments and payer clients, while also ensuring safety for prescribed medications at pharmacies. Through its wholly owned subsidiary, BioPharma Services Inc., the Company provides research data and analysis derived from Phase I clinical trials, bioequivalence studies and bioanalytical services. Its clinics act as a test bed for its software and technology, transforming them with digital solutions that optimize clinical outcomes, streamline workflows, and optimize billing.


TSXV:THNK - Post by User

Post by dt_coreon Mar 07, 2023 7:55pm
226 Views
Post# 35324900

Re: New Contract

Re: New ContractAnd there it is... a $2M engagement that resulted in an at least $40M 5-year contrct (though likely higher given most SaaS deals have annual escalators of 5% to 10% (sometimes higher). That'll be roughly 7.5M ex. working capital in annual gross profit added in 2023 for the SaaS division (assumes 1M in direct costs being incured by the company which is about average for this type of deal, though it could be a bit higher. They'll be compensated for that which is why year one is $8.5M. Therafter it'll be $7.8M of annual high margin business for at least 4 more years. 

The other announcment this quarter was the $3.5M extension of an already extended (end of Q3) deal by an additional $2.3M deal (the original deal was $4.1M), which equates to roughly $1.3M of new revenue growth per quarter in 2023 (and as I understand it a high liklihood of further extension); or $5.2M incremental revenue for the year. 

So in total for 2023 that's a $2M engagement + $8.5M contract (less about $1M direct costs) + $5.2M additional business from a prior win = net $14.7M SaaS new business this year (or therabouts. If direct costs are much higher perhaps its $12-$13M this year). Regardless that is significant growth (43% to 53% YoY) for not only the SaaS division (which did $27.7M for the past 4 trailing quarters) but its great growth for the business overall (assuming $90M rev for last year it would be 13% to 16% top line growth of the highest margin segment).

Yeah I would expect the stock to pop on this news if it weren't for the fact it hasn't been followed very closely, so it might take a few days or longer. Probably not a bad time for those sitting on the sidelines to consider jumping aboard.
<< Previous
Bullboard Posts
Next >>