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clock Created with Sketch. 03/05/18
22:25
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Originally posted by notlistening14
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"$9m EV for a company with $7m annual revenue ". Ronnie, your comments regarding valuations are extremely misleading . For the benefit of everyone here is some insight into BIQ. The underlying premise for any investment is to receive a return on your investment, whether it be through a capital gain and/or a dividend . Unfortunately, given the nature of BIQ's business model it is not in a position to do either. Firstly , it doesn't matter if BIQ makes $100m in revenue - if its costs are only ever going to match the revenue (e.g $100m revenue but also $100m costs ), the company is simply not making any money. That means a potential shareholder will receive a greater return on their investment from, for example, having their money in the bank (2-3% interest rates?!). Secondly , BIQ has failed to achieve meaningful growth
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Gross margins of 69% up from 59% suggests the underlying business model is at least viable. 98% renewal rate. 86% pcp revenue growth and ~30% pcp bookings growth. I can understand why it dropped from the massive share price it was previously. I might be missing something, please let me know if I am, but it does seem undervalued to me.
