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41.5¢ articore group limited

Against that, they're flagging negative cashflow in 2H, with...

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jamwolf

5,894 Posts.

101

28/02/24

17:11

Post #: 72651505
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Originally posted by Jaloppy ↑

The price reaction is overdone. Marketplace revenue down $29m and GP up $10m suggests, all things being equal, that the revenue foregone (ATG did forward of this change) generated a loss of $10m. Acquisition Costs (CAC)/Rev remained roughly the same at 14.6% v. 14.4% pcp. Would appear the share price reaction is in response to the decline in revenue, but maybe they haven't gone that extra step to understand that the revenue that has been lost was hugely unprofitable, with a GP of -34%! The CAC - and cautious growth in TeePublic (with solid GP increase from 38% to 42%) - demonstrate that ATG not only have control over paid acquisition costs, but that they have a much better handle on profitability at the product level. So, when the company starts to resume revenue growth, even if paid, the higher GP margins will flow straight through and with reduced overheads lead to a very good NPAT impact. I would much rather prefer GP of 36% compared to 29% any day when resuming revenue growth.

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Against that, they're flagging negative cashflow in 2H, with sales continuing to decline, albeit at a lower rate. Revenue growth in 24/5 is not a given.
They're doing the right things, I only wonder whether the concept has maxed out.

ATG Price at posting: 51.0¢ Sentiment: None Disclosure: Not Held
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(20min delay)
Last 41.5¢		Change 0.010(2.47%)		Mkt cap ! $117.3M

Open	High	Low	Value	Volume
41.0¢	45.0¢	41.0¢	$233.2K	530.9K

Buyers (Bids)

No.	Vol.	Price($)
1	9090	41.0¢

Sellers (Offers)

Price($)	Vol.	No.
42.5¢	500	1

View Market Depth

No.	Vol.	Price($)
1	9090	0.410
2	8713	0.405
7	46426	0.400
1	7407	0.395
4	37564	0.390

Price($)	Vol.	No.
0.425	500	1
0.450	3662	1
0.470	13000	5
0.480	6000	1
0.500	42643	7

Last trade - 16.10pm 03/05/2024 (20 minute delay)


Last 42.5¢			Change 0.010 ( 4.94 %)
Open	High		Low	Volume
41.5¢	44.5¢		41.5¢	16528
Last updated 15.09pm 03/05/2024 ?

ATG (ASX) Chart