BigBear.ai (BBAI) is trading up to $9.36 per share this morning! BBAI's enterprise value just hit $2.495 billion vs. One Stop Systems (OSS) closing last week with an enterprise value of only $74.23 million! BBAI's enterprise value is now up to 16.10x revenue!
With OSS set to report 4Q 2024 revenue of $15 million for huge year-over-year revenue growth, OSS will have a $60 million revenue run rate x 16.10 = $966 million + net cash of $11.47 million = market cap of $977.47 million or $46.30 per share!
BBAI in 3Q 2024 reported revenue of $41.505 million with 249,951,542 shares outstanding for revenue of $0.166 per share. BBAI in 3Q 2023 reported revenue of $33.988 million with 155,830,775 shares outstanding for revenue of $0.2181 per share. BBAI revenue per share declined by 23.89%.
BBAI has no real growth to justify an enterprise value of 16.10x revenue! If not for a highly dilutive acquisition, BBAI revenue is in free fall!
OSS in 3Q 2024 reported revenue of $13.701 million with 21,049,270 shares outstanding for revenue of $0.6509 per share. OSS in 3Q 2023 reported revenue of $13.748 million with 20,569,111 shares outstanding for revenue of $0.6684 per share. OSS revenue per share declined by 2.62%.
OSS revenue has stabilized on a year-over-year basis and OSS will begin to report huge organic revenue growth when it releases 4Q 2024 results in March! This could result in OSS being repriced from an enterprise value of 1.40x revenue today up to at least 5x revenue next month!
OSS's new management team has focused on growing customer funded development revenue because after a 2-to-3-year development period these deals result in large long-term high margin production orders! OSS 3Q 2024 customer funded development revenue was $1,018,856 vs. 3Q 2023 customer funded development revenue of $115,940 for year-over-year growth of 778.78%! This is essentially a preview of how the revenue of the whole company is likely to grow not necessarily by the same percentage of 778.78% but definitely by a significant percentage in the years ahead!
This Friday is the two-year anniversary of the launch of OSS's U.S. Army development project where it has been using Nvidia GPUs to develop a 360-degree AI visualization system to eliminate blind spots in U.S. Army tanks! In March 2024, the U.S. Army tank 360-degree AI visualization system development project was expanded, which is a very good sign that a large long-term high margin production order with the U.S. Army is coming to retrofit thousands of tanks! This summer, OSS launched a new U.S. Army development contract for Black Hawk Helicopter Threat Detection! A customer funded development contract with NASA or Space Force is highly probable!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
