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Originally posted by BkrDzn
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Looking at absolutes is not astute in assessing the excessiveness of the cost base. First it should be translated into CAC, probably on a quarterly basis for this stock. CAC total cost to acquire new customers in a period divided by number of customers acquired over the period. Note that total cost is only the costs relevant to acquiring a customer (so exclude things like G&A but also add in bonuses, discounts and an incentive to drive sales). From there also ratio it against average annualised revenue for the customers acquired in the period. Repeat this over all applicable quarters (or specified time period). The the payback, ratios and other metrics you may derive off this keeps getting higher then their spending is getting less efficient and signals a bad sales & marketing process or a product that isn't as good as first thought once the long hanging fruit is taken. I have found it hard to generate a comfortable CAC for this stock and they don't seem to present this metric or similar ones (however, this is common in many ASX listed tech/SaaS stocks).
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I wouldn't say bribed, I'd say looking the part to compete on the world scale. My point was, let's scale everything back and see where that gets the company. customers won't even know about the product without spending money on getting the word out there
(20min delay)