TEP, as someone who had been buying last year and hold >1m shares I'm not particularly surprised (but hurting a bit) at how poorly the share price is performing.
The promise of 2019 was for accelerated growth coming from maintaining existing customer growth with incremental revenue from corporate deals and upselling of existing customers. Company reports repeatedly showed revenue from customers in pipeline with a relatively modest gap to profitability to be closed.
What we have seen across the last 2 quarters is a decline in the rate of new customer onboarding and what appears to be a decline in the rate of revenue growth. There has not been any revenue come through yet from the large deals but they do appear to have distracted 1st from what they were doing in signing up smaller customers.
There has also been another capital raise which I would liked to have believed would take 1st through to profitability but I'm doubting that now.
I understand that dealing with larger organisations will have delays as implementation is more complex than imagined. Small suppliers and large bureaucratic organisations is a recipe for frustration and delays.
What I'm disappointed with is that 1st group seemed to have undergone some type of internal change where they now seem to lack the confidence, or the desire, to communicate with smaller shareholders. The 1/2 year report ( following two poor 1/4ly updates) had basically zero in terms of meaningful forward looking information. They now lack the confidence (or desire) to even put out an expected broad range target for end of year ARR.
What now is worrying me is that you are down playing revenue in Q3 and Q4. Why should we not be expecting significant revenue growth given the 1/2 yearly report alluded to significant growth in Q3. Should we expect reports of further delays?
Some other questions others may have insight into
What is considered a reasonable ARR target for the end of year? When can cashflow BE reasonably be expected/ has this near term objective now been abandoned? What changed within 1st mgmt / board to lead to the absence of meaningful communication. In the back of my mind is the obvious potential to take this company private? Has the revenue growth strategy changed or is it difficulties with execution that are causing problems?
I can't see the share price changing until 1st can demonstrate actual growth or deciding to resume communicating with shareholders.
1ST Price at posting:
3.7¢ Sentiment: Hold Disclosure: Held
(20min delay)