The first company that came to my mind when i saw this was: $U
▫️customer experience > earnings
▫️growing customer base > earnings
▫️continuous development of the main product to expand in other markets
▫️build an ecosystem around the main product
▫️focus on not giving the customer a reason to leave the ecosystem
—> like Amazon Prime the Create Solutions of Unity are just a lure for the cusomter to enter the ecosystem. Once content created with unity it is more likely that the creator will also use another value added 2/
service for this content like the operate solutions. That‘s why the entry barrier for content creator must be as low as possible (price/usability). In the first step attracting customers for the lure is expensive, but money will be made in the second step 💸
In these tweets i already made some assumptions why i think that the business development of $AMZN in the early years is in some kind of comparable to the present development of $U
I kept thinking about this and the book „100 Baggers“ by Christopher Mayer came to my mind
⬇️ 1/x
The book is about how to find stocks that return 100-to-1 and there‘s also a chapter about $AMZN and the question you could have come up with a sound argument to buy $AMZN based on fundamentals before it became a 100-bagger.
The consensus opinion in the early years of $AMZN was that they don‘t make money because they reported neg. or pretty low operating margins from 1996-2014. Today we know that these low margins results from the high investments in R&D. So they added back R&D to get adj. op margins
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▫️SaaS provider of iLottery solutions
▫️70 % market share in US
▫️highly scalable & high margins
▫️profitable
▫️sticky business
▫️huge potential for further growth
▫️undervalued
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A thread 1/x ⬇️
Business Overview
▫️ $NGMS has multi-year contracts with state lotteries to develop and manage their iLottery program
▫️Revenues calculated as a % of gross gaming revenue (GGR) or net gaming revenue (NGR) generated via iLottery platform
▫️ 360 degree iLottery solutions
Technology platform
▫️neosphere: player account management and marketing platform for iLottery and iGaming
▫️neodraw: One of only four certified Draw Games systems
▫️neoplay: sophisticated and flexible eInstant games server
@Mindbreeze (76 % owned by $FAA @Fabasoft) is recognized as a Leader and positioned highest for Ability to Execute in the @Gartner_inc Magic Quadrant for Insight Engines 2021.
💸I think the 76 % share owned by publicly listed $FAA is pretty undervalued.
Why? A Thread
👇🏻 1/x
▫️$ESTC is also mentioned in the Gartner quadrant
▫️$ESTC is currently valued at an EV/S multiple of ~ 16 and ist unprofitable on an EBITDA basis
▫️@Mindbreeze is a much smaller company but if this multiple would be applied for them their value would be ~ 248m €
2/x
▫️@Mindbreeze is already highly profitable with 50 % EBITDA Margin
▫️the value of the 76 % owned by $FAA would be ~188m €
▫️the remaining part of $FAA would the be valued with ~222m € or:
▫️SaaS company under the radar
▫️unbelievable profit margins
▫️Revenue growth 45 %
▫️Rule of 40 > 90
▫️31.000 customers in over 150 countries
▫️management with skin in the game
▫️still cheap
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A Thread 👇🏻
The company:
▫️based in Poland 🇵🇱
▫️Founder-operator management with ~ 41% of shares
▫️Market cap ~ $800m USD
▫️went public on Warsaw stock exchange in 2014
▫️25+ customers from Fortune 500 list: Unilever, McDonalds, Adobe, Samsung, Paypal, Sony, Mercedes...
Next Products ➡️
Live Chat 💬
▫️a tool for quick contact between clients and the company
▫️using chat application
▫️embedded on the companies website
▫️for customer service or online sales
▫️companies flagship product