RE: Sky News Arabia20 Feb 2021 16:27
Post from another thread.
So, putting what now appear to be the facts together: 1./ Tata have 400 clients 2./ Tata CTO said last week: "We've already converted a good percentage of our of customers and this will continue to grow. We foresee a good proportion of our customers using this as a core feature of our services." 3./ In the September investor presentation IM stated that "...the [Tata] deal size per year will be around the $50k - $150k mark." 4./ Based on approx. £2m of current annual revenue (ARR) BIRD is currently valued at £80m. So that's a multiple of 40X revenue. On this basis: are we justified in imagining that "A good proportion of our customers" (conservatively) means 25% = 100 deals? If so, then applying the average deal size to these clients (100 x $100k) = $10m. Add the existing £2m current ARR = around £10m (i.e. £, not $). So, if we're still justified in applying the 40X multiple (and with growth like this, I think we probably are), then that = a new valuation of £400M, or 5 times more than it is today. To be clear, I don't imagine that 100 clients have signed up already - but (especially with the Olympics coming down the line this year) I believe it's not too much of a stretch to estimate that this might be the number (i.e. forecast) by the year-end (Dec 2021). That's just Tata. More significant IMHO is that Tata have just demonstrated what appears to be wide-scale traction of BIRD in the market. If that is true (and I'm struggling to reach any other conclusion) then much more significant than the revenue from Tata is that it appears to be the harbinger of things to come.
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