I think you're missing a trick here, recurring revenue is valued...

I think you're missing a trick here, recurring revenue is valued significantly higher than profit based on EMC/FLC's previous investor presentations, which is why they are moving towards this business model.

On the NASDAQ a SAAS company is typically valued at x5-6 recurring revenue, for smaller growth companies it could be x7-10, EMC/FLC have canvassed valuations of x10 recurring revenue with their RAAS model in line with similar acquisitions in this space.

If 100% of FLCs revenue was recurring revenue then based on their stated valuation ratios $11mil recurring would be worth US$110mil so a pretty significant portion of the current market capitalisation.

Right now most of their revenue is NOT recurring but if they continue building the recurring revenue streams a threshold will be reached where the valuation metrics will need to switch more towards a RAAS style model based on recurring revenue, not profit, which has pretty significant implications for the share price (on the upside!).