Shares in GetSwift Ltd (ASX: GSW) are flying higher again today after the company returned to the ASX boards after boasting to investors that it has recently signed deals with online delivery giant Amazon Inc. and Yum! Brands.
According to GetSwift's latest appendix 3b announcement to the ASX, it has around 166.5 million shares on issue and in escrow, with multiple other exercisable options over shares heavily in the money.
As such the tech startup has a market value of more than $707 million (excluding the value of exercisable options that could add to the share count & market cap) with the stock changing hands for $4.25 today.
The company's value has doubled over just the past couple of days on the back of the announcement that it has signed a 'master services agreement" with Amazon, although it declined to provide any detail on the agreement let alone estimates of any financial benefits.
It also boasted its deal with Yum! Brands (the group behind fast-food businesses like KFC, Pizza Hut & Taco Bell) could see "more than 250,000,000 deliveries annually" benefit from its delivery logistics software-as-a-service (SaaS) platform. Again though no details were provided as to actual revenues to be provided from the Yum deal, even over the short-term.
GetSwift reports it now effectively operates in 69 countries and 518 cities, with other famous clients such as Takeaway.com and Commonwealth Bank of Australia (ASX: CBA).
While GetSwift likes to boast of its blue-chip client list it likes to keep its cards close to its chest in terms of cash flow forecasts.
For example the company generated just $175,000 in operating revenues over the quarter ending September 30 2017, which is probably an amount similar to your local café. However good the smashed avo, you wouldn't go and buy your local café for $700 million, but GetSwift could be different if it fulfils its potential to skim fees from the world's largest online delivery companies.
For now though it seem much of GetSwift's potential is priced into the shares already, which is not to say they won't go higher as momentum traders and others decide to buy the stock for multiple reasons.
I'm not a buyer of GetSwift shares, although it looks one to watch given its seemingly large potential.
Another SaaS business already generating big revenues and on the verge of profitability is online-accounting platform XERO FPO NZ (ASX: XRO). I would certainly prefer it as a high-risk / high-return option on today's valuations.