I agree that functionality is being engineered across many settings by many players.
To put the investment thesis in better terms, I see a company with 80% gross margins growing revenues at a 30% organic rate, with a first mover advantage in the companies they are doing business with. Recently EBITDA positive on the operating level, with over $5 of free cash on the books to help them get to GAAP profitability and free cash flows.
That company is trading at a cheap P/S ratio for any software company.
VERI is in the show me stage for their land and expand marketing strategy utilizing their "operating system" platform versus bespoke coding. They face sever headwinds in their prime markets of media and hiring, while seeing big opportunities in distributed power and government. Are they going out of business with all that cash, and a low coupon convertible debt with no near term maturity? I don't see it happening.
I assume $2 downside/$12 upside at a minimum. If they leverage their first mover advantage in the large opportunities they have already penetrated, the upside looks greater. Those are speculative odds I will take all day long when I see an actual business model and management that has grown prior media companies to successful exits.
AI is in the early innings. Frankly the tech scares the hell out of me. But there is real value to the customers they serve.
AI
