This was a disappointing quarter, no need to sugar-coat because it's clear to all. ARR up 1% to $4.94m had me shaking my head on first read. Reporting ARR up to $5.2m as of 2nd week January was a damage control ploy.
I've said it before but execution against their 2019 roadmap was well off the mark. Cash flow break even in the near term - no. Deliver robust revenue growth - no. Return of advertising revenue - a token $18k this quarter.
I feel CY2019 was a learning experience for management. Their strategy was confused (an unwillingness to go hard at rapid growth but not achieving cash flow positive operations either). There was a heavy reliance on three "landmark" contracts, which haven't gone to plan.
Positives from Q2 result
MyHealth1st easy referrals - GP to specialist referral process launched. If you've ever needed to see a specialist you know how painful the appointment process can be. This service has great potential and solves a real problem. Backed by Shexie supporting some 3,500 specialists. Site growth should accelerate in 2H FY20.
Cash receipts - up to 1,293 despite more delays in the Benestar project. Highlights a reasonable level of on-boarding over the last quarter.
Net cash and cash position - 2nd consecutive quarter of reduced operating cash with $4.4m cash on hand.
Cult like following from John Plummer - continued support to extend facility amount to $3m on favourable terms. 450k still currently undrawn.
What I would like to see from 1ST going forward2020 roadmap - one that reflects learnings from 2019. It should present a clear narrative and strategy for CY2020. The strategy should be supported with information on major contracts, sales/marketing aims and a current and forecasted pipeline. It should include an ARR target/goal (the key metric for SAAS businesses).
Cash flows - don't talk about 'core' cashflow positive as a backdoor to not achieving your 2019 aspiration. Don't confuse your shareholders (this goes back to having a clear strategy). Investors want to see strong underlying growth with sound financial management. Do this and cash flows will be in a good space.
Improved sales - diversified contract wins and less eggs in the one basket with the current three major contacts.
A focus on implementation - transparency around on-boarding timeframes, making the user experience as good as it can be.
Disclosure: I have not sold a single share and am happy to hold until Q4 results.
- Forums
- ASX - By Stock
- VFX
- Ann: Quarterly Update
Ann: Quarterly Update, page-70
-
- There are more pages in this discussion • 73 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add VFX (ASX) to my watchlist
(20min delay)
|
|||||
Last
0.4¢ |
Change
0.000(0.00%) |
Mkt cap ! $11.67M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
10 | 9837746 | 0.4¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
0.5¢ | 3609437 | 7 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
10 | 9837746 | 0.004 |
8 | 7631916 | 0.003 |
2 | 950000 | 0.002 |
3 | 1700000 | 0.001 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.005 | 3609437 | 7 |
0.006 | 500000 | 1 |
0.007 | 515000 | 2 |
0.008 | 700000 | 1 |
0.030 | 30730 | 1 |
Last trade - 16.12pm 02/08/2024 (20 minute delay) ? |
Featured News
VFX (ASX) Chart |
Day chart unavailable