Quote Originally Posted by Rawz View Post
It doesn’t matter what industry is next the fact is they are only growing their customers 7% like a $1billion mature company. Not a microcap break even company. So a lot of growth is factored into the SP.

I’m looking at a micro cap on the ASX which has just gone profitable and has revenue of $50m vs market cap of $25m. So for me PYS still has a lot to prove. The wholesale thing is very interesting for me. Good luck in Aussie I think that is a very competitive market and a big big mountain to climb, especially considering how hard they have found it growing in NZ.
Eventually the growth will be much higher, its just that the company has chosen to build its products using limited funding from their own cashflow rather than accelerating development and growth with extra capital from shareholders. Some will appreciate that approach and some won't due to the complete halt of their growth. Given they are expected to post a profit with an ARR of $8m, any future revenue will have a big impact on their profits, hence why the market values them at the current value because they have clear opportunities ahead of them and they don't need a lot of growth to make a decent profit due to their high margins.

The ASX company you mention that has $50m revenue and has just gotten to profitability means their margins are much smaller than PYS hence why it takes so much more revenue to make a profit. Markets always value high margin businesses a bit higher given their ability to generate profits much quicker.