Ann: Dropsuite Partners with ALSO, page-49

The last 4c estimated 1.3 to 1.4 outgoings this qtr.

Given the lumpy add of customers it's hard to predict cash flow positive for this qtr for me.

However I'm mainly looking at this from a SaaS company perspective.

Were growing at a huge rate though not yet proven it can continue.

At a current 750k users times .92c per month x 12 months of $8.28m per annum values us a bit under 10 x sales.

That's an upper bound valuation for a SaaS business in the USA but few have the sort of growth were experiencing.

If we continue to execute sales growth and the annual revenue rate continues to increase i see a case for share price appreciation.

Churn and arpu rates are the issues I'm watching.

Whether were cash flow positive this or next quarter or what our profitability is, is of second order importance to me. A few hundred thousand deficit a qtr is fine as we have $4m in the bank.

Now the challenge is how the ASX values these plays. It loves cash flow positive and profit but for a fast growing SaaS business they are less relevant. Within reason obviously cash burn and underlying profit potential is important but I'm ok with that because of small cash burn and high gross profit margins for the future once growth slows.

So to me Dropsuite is undervalued because of the above 100% growth rate. But I understand 10x sales is an upper bound average for a high growth SaaS business in the USA. So I also accept it is somewhat fairly valued.

However should we achieve 100% from here within 12 months I would expect a double to tripping of shareprice. If .momentum kicks in even more.

We still haven't obtained results from Europe and the USA is still greenish to us. Both good for growth but maybe shareprice attention too.

In saying all that. It's what the market thinks and if cash flow positive is what they want they may discount potential.