I still think costs are probably disproportionately high due to investments in staff and support relating to the expansion of the three pillars
- Riyo - has largely been a drain on costs till this point (minimal revenue vs amount spent). likely been an uptick in expenses due to the recent rollout, rebrand and further support team to drive sales growth.
- Asia - Establishment costs for the Philippines and Asian expansion. From what I can see on Linkedin there is now a decent Singaporean based team and a burgeoning Philippines team (see job advert below).
- AU ERP - Covid disruption (loss of deal pipeline/deferrals, alongside additional churn) possibly been the hardest hit, especially the large number of Aussie businesses in retail, food and beverage etc who have been hit the hardest wrt to covid.
So whilst some costs have been trimmed post covid and there has been some wage subsidy to smooth over a bit of the disruption, Riyo and Asia have been undertaken a significant upsizing in their cost spend, and we're yet to see the corresponding uplift in revenue. The longer lead in on supposed larger ERP implementations could also explain things, as will lead to more lumpy revenue flows (eg that recent $1.7m deal).
I'm hoping as you've pointed out over the coming quarters we start seeing some of the growth as a result of all the spend. I agree that this time 2022 should be the litmus test on how things are tracking.
The Asian expansion appears to be in full swing:
all IMO, DYOR etc...
JCS Price at posting:
6.1¢ Sentiment: Buy Disclosure: Held
