I guess the market sentiment at the moment indicates that most people will think it will take forever or never for RXH to be cash neutral. Personally I agree with the market sentiment if solely based on the trajectory income for Rewardle platform only. As you mentioned, there are x-factors there as well: the advertisement fees from postcoder.com.au, the commission fees from small merchant getting on business loans via Kikka/Pioneer and lastly further partnership opportunity with other bigger names. I think we need at least 2 more quarterly to be able to form a better trajectory income estimate.
Optimistically, if all or most of the revenue channels go well in the next 6 months, I think by 12 months time there could be a chance for a break-even situation. This will rely on continued customer number expansion as well as further cost cut of course.
Personally I am very curious about the check-ins and membership growth since the new loyalty card features. I would like to see a substantial acceleration- more than 10-15% quarterly growth--when compared to last reported quarterly growth for roughly around 6-8%. To me this is the actual weight Rewardle holds, much more important than the number of merchants (it is important too). The current technology world is based on 'eyeball' economy hence user adherence and check-ins are the only chance for a business to be successful and survival in the market.
If I have more funds I will continue to trial the decline of the RXH SP as I truly believe there is a good chance for a fundamental profit upgrade in the future. However I totally agree with you it is an absolutely speculation stock at the moment.
RXH Price at posting:
1.4¢ Sentiment: Hold Disclosure: Held
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