No Nothing to do with the share price. I really think AI is...

No Nothing to do with the share price. I really think AI is killing/going to kill the business.

Revenue for the year was $50m, down 15.8% FY24. The company says the reason was market conditions. How do we not know that it wasnt just companies taking business away?

I posted this end of last year

Found this interesting from the PPL AGM presentation

"Cost savings - AI replaces existing tools and processes. An example is carrying out translations in-house rather than using agencies. Saving money and time"

They even changed the name of the business removing Translations from it. This is the main part of the business. A few years ago they were making many acquisitions to get customers/contracts. Why has this stopped? They have plenty of money in the bank. "During the period we impaired IDEST’s goodwill by $2.7m, a non-cash charge, impacted by an institutional contract ending."

The GM was 63.8% for year, after reaching 68.8% in the final Quarter of the FY24, and is now 1,000bp higher than 2 years ago, on a full year basis. This is great but its was caused by cutting staff. Maybe because lack of growth opportunities?

I think the AI verify is a good idea and will be needed but i would assume that it is low margin as it will just need to be done manually.

I emailed the company early 2023 regarding Chat GPT. Below is the response

"Many thanks for your email on ChatGPT. We think it's pretty impressive too!

We do not see Chat GPT as a competitive threat, rather we see it as an opportunity, particularly given our target customers require translation of often complex technical corporate documents.

Machine translation has been around and free for nearly 20 years through Google Translate. The Straker technology stack is built to utilise the advances in machine translation by mapping improved productivity to lower costs for customers. Extensive testing of quality of ChatGPT translations has found it lacks the human-level generation and text coherence capabilities our technology provides.

The two areas where we see Straker benefiting is in the ability to use AI to reduce the need for project managers (for example AI could pick more accurate human translators based on our data sets) and the need for customers to not have a validation step in the translation process, something we already push for customers. With more than 15 years of data our competitors lack when it comes to training their AI engines, we have a clear advantage"

Im BTI shareholder so i hope im wrong but I havent seen any evidence from the company that they are going to have a good growing company. If and when they lose most of their revenue from Translations services