Good post curiouswon, I find this board to be particularly...

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Peeteepoo

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26/08/17

12:52

Post #: 26778708
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Originally posted by curiouswon ↑

I know that some of us hoped for more from the USA operations, hence the easing of price since announcement (IMO).
However, amongst all the growth and profitability and cash on hand and new business opportunities with 3D, do look at a couple of key numbers:
- Aust churn rate reduced to 10% - NEA has "sticky" customers, and they are getting "stickier" (look at the product and how it can get incorporated into a client business process, and you will understand why)
- Unearned Income on the Balance Sheet is $25.2M at 30/06/17 - this is prepayments for FY18 services - compare this to FY17 Total Receipts from Customers of $48.2M - i.e. NEA already has half of FY18 revenue in cash (and the sum that needs to be deducted from this to deliver those services is small [approx 10% in think] being hosting the data on servers).
These numbers are the numbers of a reliable long-term business!

And the USA is producing growth, and bigger average customer spend, and nearly covering sales and marketing costs - it remains very promising. Imagine the value there if NEA USA becomes another reliable long-term business over the next 2-5 years!

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Good post curiouswon, I find this board to be particularly frustrating with some of the things that get posted. It good to see some common sense.

NEA Price at posting: 62.5¢ Sentiment: Buy Disclosure: Held
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