$FUSZ – Updated Evaluations! Oracle ALONE gets

$FUSZ – Updated Evaluations! Oracle ALONE gets us to $7 – 11.81/Share @ 70% Margins and $8.60 – 14.34/Share @ 85% Margins! This Evaluation is based on Oracle to convince 200,000 of their current (Multi-Million) User base to upgrade their accounts to the new Joint Product. This would only be 10% of 2,000,000 users which I believe to be very Conservative.
Conservative Numbers Used for Evaluation:
Shares Outstanding: 160,000,000 (Rounded Up from 152k)
nFusz/Oracle Joint Product Users: 200,000
Price of Oracle Product $15-$25/User
P/E Ratio: I will use 50 which is well below the Industry Average of 117. See link below
Profit Margin: Conservative figure of 70% and Rory’s statement of 85%
Average P/E is 117 for the industry according to Morning Star
http://financials.morningstar.com/valuation/p...html?t=CRM

Evaluation using Price of Oracle Product $15/User & 70% Profit Margin:
200,000 (users) x $15 = $3,000,000/month (Total Revs)
$3,000,000 x 10%(Oracle’s %) = $300,000 (Oracles Revs)
$3,000,000 - $300,000(Oracles Revs) = $2,700,000/month (nFusz Revs)
$2,700,000 x 12 (months) = $32,400,000 (Annually)
$32,400,000 x 70% (Profit Margin) = $22,680,000 (EBITDA 70% Margins)
$22,680,000 / 160,000,000 (OS) = .14175 Earning per share
.14 (Earnings per Share) x 50 (P/E) = $7/Share

Evaluation using Price of Oracle Product $20/User & 70% Profit Margin:
200,000 (users) x $20 = $4,000,000/month (Total Revs)
$4,000,000 x 10%(Oracle’s %) = $400,000 (Oracles Revs)
$4,000,000 - $400,000(Oracles Revs) = $3,600,000/month (nFusz Revs)
$3,600,000 x 12 (months) = $43,200,000 (Annually)
$43,200,000 x 70% (Profit Margin) = $30,240,000 (EBITDA 70% Margins)
$30,240,000 / 160,000,000 (OS) = .189 Earning per share
.189 (Earnings per Share) x 50 (P/E) = $9.45/Share

Evaluation using Price of Oracle Product $25/User & 70% Profit Margin:
200,000 (users) x $25 = $5,000,000/month (Total Revs)
$5,000,000 x 10%(Oracle’s %) = $500,000 (Oracles Revs)
$5,000,000 - $500,000(Oracles Revs) = $4,500,000/month (nFusz Revs)
$4,500,000 x 12 (months) = $54,000,000 (Annually)
$54,000,000 x 70% (Profit Margin) = $37,800,000 (EBITDA 70% Margins)
$37,800,000 / 160,000,000 (OS) = .23625 Earning per share
.23625 (Earnings per Share) x 50 (P/E) = $11.81/Share

Evaluation using Price of Oracle Product $15/User & 85% Profit Margin:
200,000 (users) x $15 = $3,000,000/month (Total Revs)
$3,000,000 x 10%(Oracle’s %) = $300,000 (Oracles Revs)
$3,000,000 - $300,000(Oracles Revs) = $2,700,000/month (nFusz Revs)
$2,700,000 x 12 (months) = $32,400,000 (Annually)
$32,400,000 x 85% (Profit Margin) = $27,540,000 (EBITDA 85% Margins)
$27,540,000 / 160,000,000 (OS) = .172125 Earning per share
.172125 (Earnings per Share) x 50 (P/E) = $8.6/Share

Evaluation using Price of Oracle Product $20/User & 85% Profit Margin:
200,000 (users) x $20 = $4,000,000/month (Total Revs)
$4,000,000 x 10%(Oracle’s %) = $400,000 (Oracles Revs)
$4,000,000 - $400,000(Oracles Revs) = $3,600,000/month (nFusz Revs)
$3,600,000 x 12 (months) = $43,200,000 (Annually)
$43,200,000 x 85% (Profit Margin) = $36,720,000 (EBITDA 85% Margins)
$36,720,000 / 160,000,000 (OS) = .2295 Earning per share
.2295 (Earnings per Share) x 50 (P/E) = $11.47/Share

Evaluation using Price of Oracle Product $25/User & 85% Profit Margin:
200,000 (users) x $25 = $5,000,000/month (Total Revs)
$5,000,000 x 10%(Oracle’s %) = $500,000 (Oracles Revs)
$5,000,000 - $500,000(Oracles Revs) = $4,500,000/month (nFusz Revs)
$4,500,000 x 12 (months) = $54,000,000 (Annually)
$54,000,000 x 85% (Profit Margin) = $45,900,000 (EBITDA 85% Margins)
$45,900,000 / 160,000,000 (OS) = .286875 Earning per share
.286875 (Earnings per Share) x 50 (P/E) = $14.34/Share