Winner, operating cashflow of $4.5 is above my DCF of $3.5m tho...me happy!
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Winner, operating cashflow of $4.5 is above my DCF of $3.5m tho...me happy!
good result , i thought balance said the company was going bust?
Report as expected . Good revenue growth. Future revenue from super indo provided it does well since that wasn’t a contributor in the current fy so something to look forward to hopefully .: lol
Hints from CEO as to what to expect....
Plexure’s three-horizon transformation strategy is well into its third phase of ‘Execute for Growth’ having delivered the first two horizons of ‘Stabilise for Growth’ in late FY18 and ‘Build Foundations for Growth’ in the first half of FY19. “A significant focus of our ‘Execute for Growth’ phase is investment in our team to secure the very best talent to deliver the Company strategy, as recently demonstrated by Andrew Flavell joining as CTO from his VP of Architecture role at Nike in the US”, Mr Herbison continues. Plexure now has 139 staff following steady growth in its engineering, marketing and sales teams.
This was interesting; " The Company’s revenue from contracts with customers of $25.251m does not directly correlate to our user numbers. This is because over 87% of the Company’s revenue from contracts with customers is linked to contracts that were signed in 2014 with pricing mainly based on store numbers. Only a small percentage of FY20 revenue from contracts with customers is linked to consumer usage. In 2019, this pricing model was changed with new customer contracts being based on digital adoption, which will mean that as consumer usage grows so too will the Company’s revenue from contracts with customers. "
Exxxceeeelllent. This is exactly what I was hoping for. It makes a lot more sense to derive your revenue this way IMO.
The big thing about PLX this year is their focus on their staff growth and getting top quality talent. This is one of the biggest factors for IT companies to be able to execute a growth strategy, along with having management that is capable of delivery, which it looks like they are. Still early days for PLX, but with their US sales team, let's hope they sign one of the big ones in the near future (a Walmart or Costco or Kroger or similar). Next few years will be huge for this company IMO, so happy I was picking up shares at <60c not long ago!
This shift comes with the cost though. The annual report did indicate the investment on platform will have some implication to the financial result for FY21 because of this shift. If the growth happens, it will potentially raise capital and undertake ASX dual listing. I guess the good side is that it will generate more income to support the staff growth.
Nevertheless, this is a great change of the revenue model. Looking forward to the future growth of this company.