Boardwalktech BWLKF ER and CC takeaways
I am bullish!
I was positively surprised especially by the call. Transcript with my highlights here on the platform
Financials pretty much as expected (by me)
ARR run rate now USD 6.25M so trading at about 4.5X ARR
There will hardly be multiple contraction so your return is multiple appreciation + growth, which should be 60%+
They are good on cash with a big receivable not even reflected yet
But they will do a raise at some point to accelerate growth. However, there is no hurry and it'll be from a position of strength and with the stock higher imo, maybe after a big deal is announced.
Don't see that as negative or wait for it....it'll be a good ride until then. The CFO has fantastic connections and I get the sense there are a lot of parties wanting to get in that way. Don't expect warrants.
Balance sheet is VERY clean no with no debt and almost all warrants gone.
Gross margin is just ungodly good and will stay so.
They gave some hints pointing to Walmart as a new customer and the work with Meta starting + getting larger
4 banks in the pipeline now and expecting more than 1 to close this year
More teaming partners signed and the first one brought them into a second bank already+ inbound calls from such potential partners to serve financial clients
Teaming fees are in OPEX and amortized over the initial contract life. But isn't that a hidden COGS? No, because it goes to 0 pretty quickly while the ARR stays. It more than replaces a sales force.
The advisory board is really strong and should help open doors.
The product suite is really strong now.
Mgmt is more confident than ever since I have known them.
To me the risk here is very low and this will be a massive winner.
Some comps from Meritech:
