What is really positive is the fact that Dropsuite should NEVER...

What is really positive is the fact that Dropsuite should NEVER have to raise capital again in the future. This means no dilution from here. There is $4m in cash and the company should now be cash-flow positive moving forward.

Furthermore there are 20 million unlisted options with a strike price of 11c due for expiry in December. These are already 'in the money' and given the momentum in the company I would assume these will be converted to shares. This will bring in a further $2.2 million cash into the company by December.

Cash flow positive and $6m+ in the bank with a staggering annualised growth rate. Not bad for a $60m market capped IT services provider with highly scalable fully developed products in a high growth markets.

Despite all this I believe as shareholders we might need to temper our expectations in terms of short term growth rates. We know the recent growth has come from one particular partner (UOL in Brazil) and the growth rate here (while still very strong) has started to slow. This is completely normal and had to happen. What should happen from here is that new partnerships start to gain some traction however the timing of this is never perfect. This means we could see a period of slowing growth followed by another period of accelerating growth and so forth.

Personally I am hoping for 1 million users by end of 2018. This would be an outstanding outcome - however would require a net gain in users of just 62,000 a month. So my expectation is that we will see a slow down in the rate of growth but an increase in the overall net users (and therefore revenue). The growth rate however will accelerate again in the future once new partnerships gain traction and start bearing fruit.

What excites me the most about Dropsuite is that they have found a partner in UOL who were able to sell this to their users with an astonishing success rate. Dropsuite can use this marketing information and help both new and existing partners market more effectively to their client base. Furthermore they now have a wonderful success story to sell to potential new major partners. By my estimate UOL could be making around $US400k per month just by partnering with Dropsuite. That is $5m per year - with no operational costs as Dropsuite manage the service and simply split the revenue with UOL. The bulk of this $5m per annum will go straight to the underlying profits of our partners and is a huge value add to their business. This is not a bad success story to market to other potential major partners who could see Dropsuite as a meaningful way to increase their profitability with absolute minimal expenses. It is a bit of a no-brainer which is why I have always loved the partnership model where revenues are shared.

If in the next 6 months we have another partner or two that can provide similar user numbers as UOL than realistically sky is the limit. As long as they keep increasing the number of partnerships the likelihood of this occurring is ever increasing.