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OH's avatar

Have you had a chance to look at the MTP which expands on a few of the points you raise?

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Japan Business Insights's avatar

Yes! Looked at it just yesterday & still thinking through it. Lots of open questions (e.x. to what degree are outer year projections driven by existing customers switching to the cloud SaaS product + assumed churned of these annual cohorts vs. net-new adds).

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OH's avatar

from what I gather they have assumed 1-2% trend customer growth and 100% conversion of the 33k autos customers. They didn't include any of the 16k dealerships they will begin targeting. usual renewal rates disclosed as 95% so maybe a little churn gets overcome by new dealership clients.

overall seems a relatively low risk revenue ramp I think, but would want to see renewal rate close to 100% for 1-2 quarters to really believe it.

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Japan Business Insights's avatar

Appreciate these added insights! Would agree with you re: "waiting to see to believe" over the next several quarters. Even so, considering its now rather low market cap + likely muted top-line growth more generally moving forward, can the company excite retail enough to get it to a market cap level where it can actually / sustainably attract institutional shareholders? Could see this type of investment being intellectually correct / right on paper, but in reality not actually materializing due to primarily non-fundamental reasons. We'll see

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