I think using Adj EBITDA here can be mis-leading here. They capitalize a lot of "expenses" that then pass through the income statement as amortization. Correct me if I am wrong, but those capitalized commissions are a recurring expense that they then add back to EBITDA. And obviously the software development costs and the lease payments (due to IFRS 16). But Adj EBITDA less (SBC + all-in capex + commissions + lease payments) is zero-ish.
What I cannot figure out is why can they not produce real cash with their current eco-system. It seems they should be dominant in the vertical but have not yet been able to produce real profit.
But not sure using a rev multiple or EBITDA multiple is going to be correct here. Certainly not in this market environment. The market is now paying attention to SBC and capitalized expenses.
I think using Adj EBITDA here can be mis-leading here. They capitalize a lot of "expenses" that then pass through the income statement as amortization. Correct me if I am wrong, but those capitalized commissions are a recurring expense that they then add back to EBITDA. And obviously the software development costs and the lease payments (due to IFRS 16). But Adj EBITDA less (SBC + all-in capex + commissions + lease payments) is zero-ish.
What I cannot figure out is why can they not produce real cash with their current eco-system. It seems they should be dominant in the vertical but have not yet been able to produce real profit.
But not sure using a rev multiple or EBITDA multiple is going to be correct here. Certainly not in this market environment. The market is now paying attention to SBC and capitalized expenses.