So essentially Plexure is a low margin service company
Not that exciting
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Suppose the announcement the other day was just to say that Herbie was pretty good with his guesses re IPO financials - all hell would have broken out if they weren't close.
All I can say is that $20m of wages to get $29m of sales just doesn't make sense - jeez they'll need more than one big new customer to make sense of that.
Thought F20 was bad enough with $13m wages and $25m sales
so in last year wages up $7m and sales up $5m .... and that's before other costs which no doubt have increased as well.
Numbers not that pretty when you put it like that W69.
For me its not so much what the current numbers are, more so, where can they be?
I'm sure Xero, FB, Google, Afterpay etc all had some terrible numbers once upon a time. Tesla another example where numbers don't add up.
PL1 is a tiny $150m company playing in a big pond. If they become a big fish in the big pond we will potentially see a $10b company.
Now if we are having this conversation in 12 months time after they raised all that money and hired all the people they want to then yes, it will be fairly obvious that they cannot execute.
But they managed to hook McDonald's once upon a time. Lets see what some fresh capital and more FTEs can do.
On 13 Nov 2020 NBR interview, Craig hints the new enterprise will sign-up in January.
On 09 Mar 2021 NBR interview, Craig said talks with it were ongoing. “The good news on that front is that the process is continuing; for this sort of technology that we are looking to deploy this is a fairly big deal for us... it's taking longer than we would like and they would like but there's a lot of due diligence that needs to be done."
Craig said Plexure had originally hoped to be able to announce the deal prior to the first half-year results, but now thought it would be in the first half of the calendar year. It was a deal of a size that would ensure it was notified to the markets, he said.
Who knows why the dual diligence take so longer?
Issue I see with Plexure is that they don’t have a business model to leverage big earnings growth from new customers .....cost base increases etc etc.
Tech is meant to the work ...not extra people
Plexure really a low margin service company flying under the the guise of being a SaaS one
Admire your dream of Plexure being a 10 billion company .....sometimes dreams come true .....but what needs to happen for it to become one?
Not sure - while all successful companies started at some stage with an investment, this does not mean that they must produce terrible looking numbers year after year after year. As well - while some other successful companies might have had in the beginning terrible looking numbers, this does not mean that terrible looking numbers are an indicator that the company will be successful. At this stage PX1 still belongs to the class of loss making startups (and - lets face it - they have a long history in starting up and making losses).
Statistically 19 out of 20 startups bite the dust before they launch into the stratosphere, and I am not sure whether many years of trying really help in this process. If they haven't got what it takes, they can try forever ...
Which indicators do your see telling you that they will end up in the lucky 5% instead of in the unlucky 95%?
Hi guys have you heard of this upcoming event?
ASX small and mid cap conference - Craig will be speaking and perhaps announcing something?
https://www2.asx.com.au/investors/in...el=lcp-1192801
I concur winner. I love how the costs coming in under forecasts weren't to do with "streamlining" "management" "rationalisation" or "automation" it was because they hadn't hired as many people!! And yet service $$ was down substantially (which should be more weighted to automation).
They talk alot about how many API calls all their customers make like its some sort of indicator of growth - all I see growing is their people & IT costs.
I bought in large when Super indo came onboard with the belief that we would see income streams diversify - Im still wanting to understand how this is actually adding to revenue in any sort of scalable of sustainable way. Can anyone quantify this?
If it helps, Plexure is not reliant on this contract for survival - they have a big cushion of cash to invest. As I remember, the issue with Wynyard was expected contracts falling through or being delayed and leaving fatal holes in the balance sheet - this will not happen any time soon with Plexure.