The Joy & Pain of Buying a Tech Business

Yeah, which obviously created a huge cash constraint for us because we were already sort of investing in the team and growing. You don't have a ton of cash to be transforming like investing in your team plus deferring revenue, plus entering AI, plus building an AI lab, plus blah blah, blah, blah, blah. And so that obviously created a huge cash crunch.

But you know, over time it just started getting better as those monthly payments started coming in.

I mean, not make it up, but just guesstimate. Yeah.

The non recurring revenue went from 30ish percent to 7 or 8%. License resale went from 20% to 14, 15%. Staff augmentation is at about 40%.

So that's 40, 55, 60 and then 40%. Is that robots as a service plus the new AI agents that we're selling now. So fair to say it is working.

That's great. Yeah, yeah. And are you pushing for a goal of the recurring revenue representing a certain dominant percentage of overall revenue? I mean, are you pushing for 80% or something? So what we're thinking is, I mean, that would be ideal.

But the other reality is the staff augmentation side of the business is quote, unquote, very easy to manage and produces immediate cash flow. So yeah, I don't want to stop doing that because it's really great business. So maybe, I mean, at least in my head, and Antonio said we may just start treating them as separate businesses because they are, they look very different.

You know, what we bought and what we built is just like night and day. So we might just, you know, not, not legally, but just like financially or for reporting purposes, just split them up so that 80% may not become super relevant if they're sort of in a vacuum. Does that make sense or am I just saying no?

Yeah, it would. So, so the, the one, the technology delivery business would be almost all recurring revenue, but it wouldn't be as representative because you've carved out the, the staffing into its own business. Correct. The, the, the staffing business. I've heard that staffing businesses are really challenging, hard businesses and frankly unappealing.

That's a very, that's kind of a gross generalization. You're talking about how great yours is. Is that because of the niche you operate in or because of these college relationships?

That you have, that, the, the, that beaker has this incredible pipeline. Why is it such a good business in your case where I've heard staffing businesses are really challenged businesses.