Well ELMO share price is definitely under some pressure with the next 4C coming out in around 2 weeks there are a few boxes I think they need to tick in order to end the 6 month decline.
- They need to show a respectable amount of organic growth 12.4% ARR growth in H1 was not great. - They need to have lower churn. They gave up $4.8 million to churn in H1. No doubt small / mid sized business certainly bore the brunt of COVID which is the ELMO customer base but that was then this is now. - Sales and marketing spend needs to be disciplined. Again H1 result was not great spending >40% of revenue on sales for relatively low growth rate in ARR. - Finally the Breathe acquisition needs to be showing some positive results. If it comes across as a anchor or even a question mark then i dont see the market rekindling its love of ELMO.
Love to see this back around the $7.00 mark again but will only happen if they can deliver results. The ball is in your court ELMO.
ELO Price at posting:
$4.29 Sentiment: Hold Disclosure: Held
