Ann: Investor Presentation, page-24

I agree, this will pop very soon. Especially when they announce cash flow positivity. 20c I think is a very fair short term target. The challenge with this stock is coming up with a fair value. Do we use 5x revenue, or 20x revenue? Do we start looking at forward looking PE, for which I believe we are currently sitting at 30x EBIT or 40x earnings. The recent user growth has been from one partner, and this is inevitably going to slow down. How long before they can do the same thing with another massive partner?
IMO there are a few things that are needed to really see this stock pop to the big numbers, and will allow investors to use much higher multiples for PE or revenue multiples.
These are:
1. consistency in growth - we need to see multiple partners contributing to significant growth, and we need to see user growth stability over time, rather than just a few months here and nothing for a while.
2. stable churn - this will come over time, there is some risk with the recent growth that churn may be greater than sign-ups for a short period, seeing some reduction in user numbers before it flattens out.
3. Growing earnings - once we hit cash flow positivity and have positive earnings, we will be able to assign more accepted valuations methods such as PE. We are actually sitting at a forward looking PE of around 40 based on my calculations currently. (with 8.2mil ARR, cash flow of $2mil predicted, with $1.5mil profits giving a current forward looking PE of 40x).
If in the next 12 months we see these points satisfied, I believe some lofty price targets could be hit, such as 50c - $1, valuing the stock between $250mil-500mil. I think we may just be at the start of the ride!