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Treba

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10/02/23

14:22

Post #: 66181651
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Originally posted by wave4: ↑

Having made a living for many years in the transaction processing sector, the huge upside of this sector is the "low cost of revenue" which for the big 2 of this sector MA & V (is between 0% & 3%) being at the top of the food chain.
From my time working for one of the big 2 , there was always an emphasis on reducing costs & remaining competitive.
(Visa)

For SPT the cost of revenue is 16% or a gross margin of 84% which is still awesome!!!. Where the current business needs to improve is to reduce the operating expenses.
Failure to do so means shareholders capital is being eroded due to capital raisings (last one $10m) required to
keep afloat until we reach a certain scale in revenue (at least 3 times ? ).
As a shareholder I would like to know what measures are in place to try to reduce the operating costs
until we get revenue to a sufficient scale so we can avoid any more capital raisings ?

(SPT)

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Originally posted by sneef: ↑

That is a tuff act to reduce expenses to bare bones Wave.

SplitIt are performing research & development to advance the technology to move forward that was one part of the last CR - new capabilities that do not exist today. In the meantime, they need sales people to get the product moving to form partnerships, it costs money to get descent experience staff. So whats left to cut back - the building lease, company cars and admin costs.. ? It would be still good to see the expenses broken down and compared quart-to-quarter with an explanation as to why it is happening. Accountability.

If the cost of revenue jumped to 20% next quarter and they justified the expenses in sales and R&D breakthroughs, would it matter?

Expand

Ben Malone (CFO) stated in the last webinar that they would be expecting profitability to begin at around an MSV of $1.2-1.4billion.

Based on current MSV to revenue for the last quarter (3.1/141=0.022...or 2.2%) that means future expenses to support that will be in the vicinity of $1.4b x 0.022 = $30million.

So basically saying in that sentance they expect/require $30-40million in expenses in a few years to support that MSV.

Last edited by Treba: 10/02/23

SPT Price at posting: 18.5¢ Sentiment: Buy Disclosure: Held
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