Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-9

The increase in costs I think can be largely attributed to the international/U.S expansion. It was one of the key reasons for the last capital raising, so I was expecting the costs to increase. You can see they have been continuing to building up the team there which have made a great start in securing sales.

This is referred to in the report where they state:

"A key focus for the Quarter has been the successful establishment of an Inside Sales function."

And you can see this in job advertisements like these for sales reps.

So in the short-medium term, I would expect to see both sales and costs increase as they build up their U.S operations, but in the medium-longer term as their sales team becomes established, see growth increasingly outstrip operational costs.

Overall, WSP is basically still in the very early stages of international/U.S expansion, so you should not be expecting to see the benefits of scaling with operational costs stabilising and margins increasing yet.

I think this is a great result for the quarter, with 34 new customers signed in the U.S and the real icing on the cake being the Singtel deal they landed which is a very big deal.

Unfortunately, the market just hates all growth stocks at the moment and the sell off has become a bit indiscriminate, so I have no idea what the share price will do in the short term - they've posted a great result, they achieved exactly what they said they would, and yet it's just been sold off with the rest of the market.

There's a lot of garbage concept growth stocks out there in the market, but this is not one of them imo.