Ann: Appendix 4C - quarterly and commentary, page-25

Patience is the key.

I am happy with how the company is tracking and will not be spooked by those who do not understand how companies like this operate. I suggest a careful reading of the whole announcement rather than a knee jerk response to cash generated this quarter.

Dave is at pains to reassure us that, apart from the obvious blips, things are going at or better than expected for where we are in the start up cycle.

Extracts from the announcement -

These figures remain in line with management expectations and previous guidance that the Company is focusing primarily on building traffic and device connections to the Buddy Platform, with revenue generation being secondary.

Management continues to offer guidance that the Company must reach a minimum threshold of device volume and data traffic prior to achieving meaningful monetization, as is the case in any data oriented software as a service (SaaS) business.


That said, we have signed contracts – representing future (but largely CY2017) revenue – totalling up to A$2.6M. This includes contracts and/or renewals that have not been publicly announced, and our total number of contracted customers continues to grow.

Based on signed contracts, we are on track to record more than A$425k of quarterly revenue in Q3 FY2017 which would represent 257% growth quarter-over-quarter.


And for Parse on Buddy, I thought this was worth noting -

At the close of the quarter, and after adjusting for signed contracts, Buddy’s sales pipeline grew 17.6% over last quarter to A$4.0M, with A$2.0M of that figure being deals in the last stage of the pipeline – “proposal”.

Ending CY2016 with a conversion factor (percentage of total pipeline value that converted to executed contracts) of 42.4% is extremely pleasing, especially in an enterprise SaaS environment.