Hey boys and girls hope you're doing well. My name is tom, happy valentine's day, q2 financials are coming up in just about an hour and in this video i'll teach you where to focus on the financials, which is not necessarily being said on mainstream media, because i want you to really understand. What's going on with this company now this isn't the most simple company to analyze. We can all agree to that.

What they're doing is kind of complicated, not always fully understood so i'll teach you how to separate the nonsense from the important stuff. So the first thing mainstream media will tell you to focus on is adjusted ebitda or profits, which is completely irrelevant for this type of company. In this stage, in their life, we're talking about a company, that's rolling out a new commercial business which is completely separate from the government business. Now this commercial business is basically in development, or at least in the early stages of rolling out it's about four or five years old max now, here's the thing what they're doing right now is every cent they have coming in is going back into engineering and into Building a sales force so you're not going to see high ebitda you're, not going to see high profits, but what you can see is a lot of stuff that mainstream media is completely missing now.

I won't be sitting here and pretending. The talent here doesn't have any weakness, points, potential, failures and risks, because they do and in this video i want to show you what i'm going to be looking at in the financials to get a better understanding whether these potential achilles heel issues are getting better. Now the first thing is valentine's dependency on governmental projects and business. We all know that a lot of hype, artists on youtube, tend to forget about it.

It is an issue that needs to be resolved right now. Talented is deriving 61. Don't really care about the number as much but 61 of their revenue is comprised of the government business. I want to see that number go below 50 in the next year.

Any progress from 61 towards 50 and 45 in this quarter would be an improvement if that number stays at 61 or even goes up. I don't see this problem is getting better. In fact, i see it getting worse, so i want to see that number go below 61. That's the first thing i'm going to be looking at now.

The second thing is the actual revenues now not really obsessed about the revenues, but i want to see a steady increase now last quarter they had 345 something like that. This quarter, i want to see a 10 increase, so i want to see 370 375 a steady, slow growth. You know, like you lose weight, you don't want to lose weight in a day or in a week. You want to have a steady process, so i want to see a slow 10 curvature over q2 then q3, because 10 per quarter over four quarters.

It's insane. So i want to see that happening slowly. Nothing excessive 370 would be a really good result for revenues, but again not really obsessed about revenues and these financials. Let me show you something else now.

The next thing is kind of obscure in the financials and you won't hear the mainstream media because they either don't understand what it means for volunteer or they understand it, but they don't give you the credit as if you're not smart enough to get this. I give you credit, that's why i am gon na. Do this so check this out. This data point sounds like it's good news, but it hides a potential flaw in volunteers, business model, which i want to see get better because as a fan of the company as a long-term investor, i want to see the real problems get fixed and not swept under The drug, so the share price goes up in the short term, so us revenue sources were up by 81 in the first quarter.

Now, government business was up by 76. This quarter amazing but hold on a second. What about the rest of the world? What about the commercial side, so the commercial business only grew by 19 in q1, so as the government business is growing by 80, the commercial business is only growing by 20. That's q1 number, so the government business is essentially growing four times faster than the commercial side, and we all know that the real money, the path the one three-layer evaluation, is going through the commercial side, as a government contractor you're, never going to be a one trillion Dollar company, so i want to see this ratio getting better.

I'm really happy to see government growing at 80 85. I don't care what happens with the government side, but i want to see the commercial growth go up: they're, not mutually exclusive. The number for the government growth can go up, but i want to see it go for the commercial side higher than 19. In fact, i want to see 25 26 growth, maybe even 30 growth in this quarter.

The other thing is that i do want them to give me more data about what's going on with the rest of the world, i'm really excited. You grew us revenues by 81 percent, but let me see what's going on in the rest of the world if you want to be a scalable global business that can be implemented anywhere. Global growth has to match u.s growth if you're only growing inside the u.s, and you literally don't have enough growth outside the u.s. That's the major issue that i am as a shareholder want to be aware of.

So i want to see more data about this in the financials and again not something that mainstream media even focuses about, but row rest of the world revenues and their growth is really important to me now. The next point i'm looking at is again not really trivial, not going to be highly discussed in mainstream media, because it's hard to understand but i'll explain. The one issue that still plagues volunteer to this day is their extreme client concentration, they're, really dependent on a small amount of clients. How small, well 61 percent of their revenues is coming from their top 20 customers.

That's not a healthy situation, because you, as a business owner, bear a lot of the risks when you're dependent on 20 clients for two-thirds of your income. If one client goes away, it's a big hit to your business, so you want to spread it around as much as possible, so you want to have less clan concentration. The other thing is: if you want to prove that you're a scalable software sas business and not a consultancy which i think they are, they have to show that they're able to reduce client concentration. You don't have client concentration if it's a sas software business.

So i expect this number of 61 of the top 20 clients to go below 50, the sooner the better, the more progress they do in this quarter, the better. In fact, i expect by the end of this year, this number is going to be well below 40. I want to see a total scalability they're trying to get it done with volunteer for builders. The whole unlock thing they're trying to get there, but this number has to go below 61, which was the number for 2020, the entire 2020..

Let me see these numbers in these financials. This is really critical, much more than ebitda or profits. This is the real stuff i want to see now. The other two numbers i want to see is expenditures per client.

I want to see that number kind of go up a little bit they're already getting about 8 million per client. Now i want to see them squeeze the limit a little bit more going all the way up by 10 to 9 million per client again. That would be a really good proof to me that their clients are not only staying they're increasing their budget, essentially they're really happy with the product. The other thing is the remaining deal value.

Last night we talked, we had 5.4 billion in remaining deal value. I want to see that number grow to 5.6, 5.7. 5.8. Maybe in a very optimistic scenario, i want to see that number grow because that's the cushion for valentine to lean on for the next two to three years as far as potential revenues.

Now again i told you this isn't going to be some kakamemi with all the stuff that everybody is regurgitating ebitda blah blah blah, i'm going to be looking at the stuff that i care about, because i honestly understand what this company is lacking in and i want To see it get better, not the share price go up, so i can swing trade them. It is what it is, just my opinion might be. Inaccurate might be wrong, might be the ramblings of a madman. You got ta, do your own research, allegedly blah blah mother, effing blah, as always a huge shout out to the channel members and the patrons.

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