BPG Black Pearl Group

[Rawz]

BPG say acquisitions are a key part of their growth. I.e they acquire bolt on technology for their pearl engine. But how can they do this with no capital?

[Leemsip]

Maybe do a cap raise once they hit the cash breakeven $10m ARR?

[sunnysleeper11]

The following phrase was released via the NZX in their quarterly update:

"Between 1 July 2024 and 15 July 2024, we have already billed or received commitments for nearly NZD$1m (gross) in new ARR. This is double where we would normally aim to be at this stage in a month, thanks to the team successfully selling and provisioning the new higher-value packages.

We are now approximately six weeks away from surpassing the milestone of NZD$10m ARR. But let me be clear, our ambition is not just to thrive in our part of the US small-to-medium-sized business market, but to dominate it. To do this, we need to aggressively grow from NZD$10m ARR to NZD$20m ARR, and our goal is to achieve this over the next 12-18 months. "

https://www.nzx.com/announcements/434516

thanks Blizz and Leemsip

I read the announcement on the NZX until it said "ENDS" so I stopped scrolling down...
little did I know there were links to more updates at the bottom...
good to know for the future!

[silverblizzard888]

thanks Blizz and Leemsip

I read the announcement on the NZX until it said "ENDS" so I stopped scrolling down...
little did I know there were links to more updates at the bottom...
good to know for the future!

All good, easy mistake to make. Wait till you try to look at US stock filings, now thats a minefield.

[silverblizzard888]

Not much sellers at the moment, barely any liquidity for the stock to move. No sign of the capper either, they would have sold another block of 100k stock by now.

[Ggcc]

Not much sellers at the moment, barely any liquidity for the stock to move. No sign of the capper either, they would have sold another block of 100k stock by now.

I am happy where BPG is heading so far. Of course I will be happier when the ARR is actually subscription revenue. If all goes well and I feel it is so far, I can see the SP above $1 by the end of the year. Maybe time to add a few more if or when the price drops a bit.

[silverblizzard888]

I am happy where BPG is heading so far. Of course I will be happier when the ARR is actually subscription revenue. If all goes well and I feel it is so far, I can see the SP above $1 by the end of the year. Maybe time to add a few more if or when the price drops a bit.

Based on some research around ARR valuation multiples, stats show a multiple of 4 will provide a good rough estimate for valuation, which seems plausible when looking at BPG and Paysauce, both trade within a band of 4-5 times ARR. If BPG get to $12m ARR by the end of the year then $1 is definitely within reach. For now the market has already rushed ahead and valued the company as if it had already achieved the $10m ARR mark, since they expect $1m ARR to be added in July that moves ARR to $9.6m by end of July and by the end of August the sweet breakeven point of $10m ARR.

[Ggcc]

Based on some research around ARR valuation multiples, stats show a multiple of 4 will provide a good rough estimate for valuation, which seems plausible when looking at BPG and Paysauce, both trade within a band of 4-5 times ARR. If BPG get to $12m ARR by the end of the year then $1 is definitely within reach. For now the market has already rushed ahead and valued the company as if it had already achieved the $10m ARR mark, since they expect $1m ARR to be added in July that moves ARR to $9.6m by end of July and by the end of August the sweet breakeven point of $10m ARR.

I get that we can use the 4-5 times method as a rule. Is that usually for growth companies that create a profit or those that produce heavy turnover? I feel it is more for the Xero style companies. BPG should be making money and if they are they will naturally be re rated to higher multiples. Of course we can only see that new rating once they start to make money, which apparently will be within 6 months. Also interest rate drops will also accelerate growth stocks SP.

Exciting times. Of course everyone should DTOR