Some interesting information in the research report. I'm sure the analyst would have spent quite some time with Mark and/or Patrick.
The financial metrics assume each client in the CBA network that is being advised using IAM's software is worth $199 for the initial advice and then $100 p.a. annuity style revenue.
Traction is really gained from the second year onwards, where revenue is anticipated to jump over $20M. And yet the analyst expects 500M performance shares to trigger by 30th June 2019 for reaching $4M NPAT.
We're less than 15 months from 30th June 2019, so even if the analyst projections are correct I think it will be a big ask getting to the $4M NPAT hurdle. The first year assumption is for revenue of around $5M, which would probably achieve the $1M NPAT hurdle by 30th June 2019.
The selfish shareholder in me wants Mark to be issued with as few performance shares as possible so my holding is not diluted further.
On the other hand, I hope these numbers are conservative and IAM smash the ball out of the park with their CBA agreement.
Some interesting information in the research report. I'm sure...
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