Nov. 17 at 8:53 PM
I've owned this stock on and off for over a year. I think it is going to be difficult for
$PAYO to trade at anything approaching growth multiples, given its flattening ideal customer ("ICP") numbers on the platform. On the earnings call, the CEO mentioned that next quarter will show a further drop in ICP levels. It increasingly seems that revenue growth will be tied to expansion in global trade across a fixed number of customers, without a meaningful growth of the underlying customer base.
I don't understand how they spent
$230M in sales and marketing over the past 12 months and reduced ideal customers on the platform by 2%. I assume there is some level of churn, so they have to spend money to simply maintain the ICP levels, but they are clearly struggling to convince new small businesses to use
$PAYO.
