Replies to post #52735 on VirTra Inc (VTSI)

[fishhunter]

In my view you just spelled out THE #1 problem with VirTra perfectly and succinctly.

Those 2018 thru 2021 are brutal. Those are zero growth numbers no matter how you look at them. Even the 2021 number is less than 2018 in constant dollars! Pathetic. Now do the same with EPS over the same 4 years and try not to puke, it ain’t easy.

I own the stock now because of the new captain at the helm. I own it because of the potential. I own it because I still believe it is EASY to fix the sales org. But it is so frustrating to own because they simply refuse to address the elephant in the room.

[sharpchicity]

This is something I don't think is talked about enough.

> Another factor is the STEP program. How many full priced sales have they missed in order to lease equipment at a fraction of the annual cost to make them more affordable and obtain reoccurring revenue which is much more valuable longterm?


In Q3'20, they did $0.23m STEP revenue. By Q4'21, they had TTM of $2m STEP revenue. Because they only made $0.5m in Q3, they were probably closer to a $2.5m runrate at the end of the year. This implies that they did something like 50 STEP orders sales over the 5 quarters. Assume an average order price of $125k and that means ~$6m in revenue has been pushed through STEP and (6m - 2m = ) ~$4m has been "deferred" through STEP's recurring revenue model. Imagine what 2021 would have looked like if $4m was added to revenue at almost gross 100% margin?

This probably won't ever be a huge factor in the current stock price as it's marginal revenue and growth, but when VirTra eventually gets bought out, this will surely be factored in to the purchase price.