Thanks for your response :) I can see how that would work but...

Thanks for your response

I can see how that would work but $3m+ ARR for a business that costs at most $11m over ~2 years is ludicrously cheap. Assuming a discount rate of 0% and no growth in ARR Zunos by themselves would earn $6m all things being equal in that time.

Assuming Zunos' ARR is $3m+ and the cost of the business was $11m it would imply a fair amount of op expenses (pretty ordinary naturally) or debt but these would also get added onto BTH's balance sheet. Sure there might be some economies of scale but with any integrations into a business you wouldn't expect 100% efficiency, you would generally expect inefficiency driving up costs (at least in the short term).

In any case - i reached out to their investor email asking for a bit more clarification around their proposed strategy to reach rev neutral by December and will report back with results. Might as well get it from the horses mouth.