I came across REV's Porfolio Builder product just this week and it looks solid so I began looking into the financials. Note I've only been evaluating REV in the last few days and may not have the whole picture and this post is going to seem overly negative and may be seen as downramping but I'm honestly just trying to get a grasp of progress so far, and the path to profitability. Hence I've been looking forward to yesterday's 4C.
The forecast for FY16 was for revenue of $5.17m. Yesterday's 4C shows only $3.5m of receipts for YTD.
Whilst revenue != cashflow, you would think that they'd be somewhat in alignment... unless there is some $1.5m in payments outstanding?
The lack of any mention of subscriber numbers in the latest update also seems worrying. If they were growing steadily you'd think they'd mention that; implying that subscriber growth has slowed dramatically, or maybe even negative?
There were 170,000 members at March, 202,423 at June 30, target of another 50k by December, so the rate of growth is slowing. But my main concern with discussing "members" is what exactly is the definition of a member?
I hope it's not just anyone who has ever registered on the website as the implication is that some % of members should be able to be converted to subscribers but in reality someone who signed up 3 years ago and hasn't been active since is probably never going to convert to a paying customer.
