Always intrigues me why a CEO does not put an analyst cap on...

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Rokewa

1,231 Posts.

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22/02/22

10:45

Post #: 59726113
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Originally posted by SteveSage: ↑

impressive result....but

one of the analyst asked a question that mgmt just did not answer:
- 1H22 revenues 40m
- FY22 forecast is 64-68m (so only 24-28m) so what gives.....expecting huge churn or what??

I think it's to do with the much much higher transactional revenues from covid messaging that they expect to drop (or dissapear)......on their presentation they indicated that ~72% of 1H22 revenues was recurring so in theory they should be able to do ~28m in 2H without any drama (if they have got this recurring measurement correct.....and this is also a question mark given it includes a combination of transactional revenues and platform license revenues)

also big statement out there that they won't need more capital before they are cashflow breakeven......burnt ~10m this half even ith this great result so a big question mark if that is possible IMO

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Always intrigues me why a CEO does not put an analyst cap on before presenting and Q&A, so as to anticipate questions. A stand-out observation and he bumbled his way through the response.

Otherwise pleasing result, but traction in North America is key going forward. Growth percentages are generally meaningless if you are coming off such a small base. Need to get to $10 m + in North America. I see he mentioned headcount now in a 'steady state'. R&D spend at $6m for the half.

Stage is set for accelerating growth. I will hold for next 12 months.

Rokewa

WSP Price at posting: $1.90 Sentiment: Hold Disclosure: Held
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