hi Access, my understanding is they are very much aware of the need to improve selling the story, and plan to devote some effort to this in the coming weeks.
More specifically after making a few detailed questions / suggestions in this regard in response to the qtrly Michael and Brendon Lau were kind enough to spend 45 mins on a VC with me this week. None of this was any information being disclosed to me but where instead I walked through the investor pack end to end with my presentation suggestions /questions slide by slide for them to go away and consider.
there are two seperate issues really:
1) what additional Information can they disclose. Not wanting to talk about margins is one thing but they could talk about for example months plan utilisation per device instead. This is though all still subject to agreement with roadpost which gives them a set of constraints
2) improving the cohesion of presenting existing information already disclosed. For example:
a) the European launch roadmap where in the qtrly it just refers to ‘2022’ which implies calendar year, but in the newsletter it clearly states FY22 which starts in July
b) the previous jan qtrly refers to 13,000 devices being delivered by the end of April. The timing of invoicing to Beam versus revenue recognition of previously stated facts they should be able to be precise on as this is revenue to BCC itself as opposed to the joint venture. They could state quite clearly x devices invoiced and paid for in the qtr, y devices invoiced in the qtr with revenue to be recognised next qtr.
c) the treatment / hedging of FX risk. Ie there is a growing disconnect between US sale price and Aus sale price driven by exchange movements since Aug. (Michael said they didn’t think this was an issue for them as they mainly deal in US $ but it should be spelt out either way. As could eventuate in upside for AUS sales of invoiced devices to roadpost are in US.
d) the order, format and structure of the investor pack building a compelling story.
I was pleased to hear they both fully acknowledge the frustration and are aware of need to engage the market better on current progress.
Given I understand Brendon plans to do some work on this in the coming week I would suggest the posters here with additional helpful specific suggestions submit the to
[email protected] and I am not suggesting everyone email ‘please disclose margins’ as they clearly won’t and it’s pointless to ask.
I think they can model more clearly how the FUTURE rollout will plan into the more profitable regions of the agreement with examples of gross plan per 1000 devices in different scenarios. But in terms of the metrics you referred to Access we had a good discussion on other metrics which would be used to map CURRENT progress of device usage more clearly but less controversial, for example:
- average months plan utilisation per device
- total messages sent each month from Zoleo devices
- app downloads each month
one interesting point Michael did make which hadn’t occurred to me was in terms of creating a networked ecosystem for selling future value add services to they see the app users as their target base in addition to just device users. Ie each users key contacts (family etc) will need to download the app to interact with the Zoleo. So if say each device user has an average of 5 key contacts for 50,000 devices that’s actually 250,000 people who interact with the Zoleo app.
finally in terms of timing I couldn’t be specific but they were keen enough to hear my feedback. To close off my small contribution to investor comms on Friday I also introduced via email Michael and Brendon to mark tobin from coffee microcaps (who have over 3,000) followers. And suggested they make BCC subject of a future slot, or even if timing was possible on both sides potentially include them in the 11th May investor conference in just over a week you can find here.
https://mobile.twitter.com/i/web/status/1386930954518859777they both responded in the positive they would continue the discussion and BCC were happy to be involved in some wider PR so I have left them to it. Personally I think the timing for 11th would be a stretch so don’t put any store in that, it’s more me just trying to push more of a sense of urgency.
So in summary we’ll see what happens in coming weeks but it’s timely off the back of the Aus post deal to release a refreshed investor approach and I was very happy with how open they were to my feedback on progressing this as a priority.
(20min delay)