Kooth Share Discussion Threads

[hatfullofsky] 07/2/2024 10:11

https://apple.news/AFb4u4uluTMimKb35q2GLCgThis is why we need Koothhttps://www.theguardian.com/society/2024/feb/07/childrens-emergency-mental-health-referrals-in-england-soar-by-53

[mighunter] 06/2/2024 09:56

Ken Wotton of Gresham House comments on Kooth at 51:50hTTps://videos.voxmarkets.co.uk/video/7036

[acuere] 27/1/2024 09:38

“roll out of the Kooth program throughout the state.”

Article this week about Kooth rollout.

[rimau1] 22/1/2024 07:43

Yes the $3m delayed receipt would have resulted in a nice beat on the "at least" $34m. Good to see advancement in Penn too for the extension. One to keep tucked away.

[babbler] 22/1/2024 07:30

Nice figures this morning

[pireric] 15/1/2024 08:59

My question is - why is any sort of SaaS metric relevant here? I understand what they want to be classed as, but why not as a fast growth services business (until contracts fully ramp), and then just a normal services business?

Which would of course imply a very different multiple. If Kooth had fully rolled out and was say growing 5% a year, what's the right multiple for this business? And bear in mind you could theoretically lose the contracts you have at some point down the line (not super diversified customer base)

I'm not sure the answer is more than 20x P/E, maximum?

Eric

[gretagarb0] 15/1/2024 08:09

It is precisely that - a hybrid route. They have their team in the Uk and are building one in Penn - I think further afield ( as in other parts of the world - maybe states too?) they will look for partners to deliver the human interaction using their technology as the interface. I should imagine that is a big part of their strategy.

[rimau1] 11/1/2024 16:41

They have dealt with this before on investor calls as they get this question a lot. The CFO wants to be treated as a hybrid SAAS so not a typical pure SAAS, so i interpret that as a valuation metric of ARR x 3-4x rather than a SAAS of ARR 5-10x

[gretagarb0] 11/1/2024 16:37

I think they will try and go down the SaaS route.

[mighunter] 09/1/2024 11:37

Personally I'd taken that as a positive. Although the upside potential was also mentioned in the July RNS, the recent success/uptake in Pennsylvania and discussions with other states I thought had now steered them to mention the potential upside in the same breath today. Ie, possibly more self-confidence in it happening. Might be wrong but that was just my take.

[74tom] 09/1/2024 11:17

Today; "the contract has an expected value of $188m through to June 2027"

July; "The Contract has a minimum total contract value of $188m through to June 2027"

Why has minimum become expected? That's quite a significant shift in contract language...

[babbler] 09/1/2024 08:04

You value it on financial results and what that delivers value wise.Havebtinsee what that brings soon.

[pireric] 09/1/2024 07:27

How do you value a business like Kooth? Although the company (probably because of its VC) profiles itself as a SaaS company/software gross margins, it's definitely not that, and will never be valued as a tech business (unless they are successful in mass-licensing the software interface in overseas markets).

Without that second point, it's merely an app interface for a professional counselling business. Albeit it's maybe not full professional given the nature of the helpers they are recruiting (many young, and out of university). There are quite a few risks around that which probably deserve a discount.

Interested to hear any valuation framework thoughts anyone has as to how to value this business

Eric

[mighunter] 09/1/2024 07:04

Possible revenue upside to the Californian contract dependent on usage and development

[saucepan] 03/1/2024 16:43

Well-spotted; thanks.

[rimau1] 03/1/2024 16:29

Yes, noticed this was live on 1st Jan as promised in both Spanish and English and available to download. Promising....

[jurgenklopp] 03/1/2024 12:00

Soluna up and running in California.

[jurgenklopp] 03/1/2024 08:41

Been very quiet the last couple of months.
There should be a trading update in the next week or two.

[hatfullofsky] 19/10/2023 18:29

Nice read from Spire who acquired a mental health company today

[rimau1] 02/10/2023 15:09

Maybe they used "target" they did say "at least one" as far as i recall. The exciting news was they do expect to formalise the Penn contract from pilot to contract in Q4'23 as the state are still finalising budgets.

[acuere] 02/10/2023 13:43

Cheers rimau1, I’d clean forgotten about it. Re the new US state award in 24. Did they use the word expect? They must be very confident to say that rather than hope.

[saucepan] 02/10/2023 13:26

Thank you, rimau1. That is great feedback.

[rimau1] 02/10/2023 11:37

Excellent investor call this morning and they answered all my questions. Cali is on track for go-live. News on Penn expansion and potentially formal contract award expected in Q4. Laser focussed on Cali delivery, pilot in 2 communities is live, all 19 languages on track. They will then bring the Cali technology back to the UK to upgrade the UK tech which is great news. Expecting at least one new US state award in 2024 but no news on this in 2023. Hopefully Penn large contrsct award incoming.