All to be expected.
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I wonder what 8% number is in the US....Sounds a bit like a fishing boat going to the Falklands cos someone said they caught a few cod the other day.....IMHO....
I wouldn't like to be a large holder wanting to get out with this market scenario..IMHO...
That was the most useless shareholder presentation I have seen in my life, and I've been around awhile! How could they even call that a forecast? No mention of average user revenue rates, churn etc. Unbelievable!
Have you got a link to the slides? i'm curious to see how bad it was.
Woeful would be doing it justice. Abismal would be closer to true reflection and a complete an utter failure would best describe performance.
This is a sinking ship with annualised recurring revenue having moved from 610k in March to 867k in Sept. Ave sale price approx $6.50 so a failure from management to increase prices.
Total cash remaining of NZD$5m at 29 Sep 14 with net cash spend in last 6 months of 2.6m. Capital raising will be inevitable for this business in the coming 12 months.
Annualized revenue of $867k and 13370 users = $65 per user per year which is only $5.40 per user.
Atleast their list pricing is now realistic with actual pricing. Will make it easier to value given you can now completely ignore the $20 fiction.
On the up side, revenue growth is 610k to 867k which if they can keep up, is over 100% revenue (MRR) growth for the year. Even then, that only puts MRR at less than 25% of cash burn. They need to hit the US hard and they cant rely on Xero (pathetic growth in the US to date) to achieve that so need to get Intuit and Salesforce integration.
I wonder how their tech stacks up against the opposition (Eg. Xero is generally seen as even or better than all others) and if it is better, can they get this message across to customers?