The sales team at XF1 are killing it, signing up so many new clients and now over 30% of the ASX50 use the company's services. Revenue continues to grow but so do costs. I understand costs are high because they are going through a growth phase and starting the international operations.
I just wonder, how is this company ever going to be profitable? With such a large client base already, they are making big losses due largely to staff and admin costs. They basically need to triple revenue whilst keeping costs flat in order to break even. How is this sustainable?
The cash burn as a result is pretty high, so I would also expect another CR later this year.
I'm not down ramping, I'm just curious as to how the operation becomes profitable.
Last edited by hlnbidoffer:
Incorrect position: I do not hold24/02/17
XF1 Price at posting:
42.5¢ Sentiment: None Disclosure: Held
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