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08/07/18
08:56
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Originally posted by Leverageman
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Can anyone help, Von Trader?
After announcing estimated 2018 calendar year revenues of $24.5 - $25M on 9/4/18 and then the Adcel acquisition on 3/5/18 and two new Asian contracts on 17/5/18 showing combined 2018 revenues of $30M in a graph why did the company then on 31/5/18 reaffirm previous revenue guidance of $24.5 - $25M?
I would have thought with the two new Asian contracts of $4 -$8M and the Adcel revenues of $2 -$5M, both annualised and 75% of the revenue coming in the second half (not entirely sure about the two Asian contracts) this would have lifted forecast revenue for 2018 calendar year to at least $30.5M but maybe as high as $33.5M.
Also the 10% increase over forecast for the half year announced on 2/7/18 would have to boost full year forecast revenues by a further $612,500 being $24.5M x 25% x 10 %.
I think the market is confused about revenue guidance and this is not helping the floundering share price.
Can anyone shed some light?
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Simple ...
They haven’t done a guidance upgrade yet
The AdCel deal is still to settle and the revenue from the 2 Asian advertisers won’t kick in until this quarter
The market already doesn’t believe their numbers, so if they were to upgrade them again so early it may not do much SP wise - better to let the quarterly figures do the talking