I think there is a lot of confusion regarding the revenue. Only management can really clarify and increase interest.
First it's amazing how revenue seems everything when companies like Martin Aircraft are valued solely on their potential future revenue. This potential could be $0 or could be heaps.
In the quarterly MJP had $0 revenue, millions in losses and the company has a market cap of more than $150 million. Work that one out buckland
Back to SRO and the revenue figures from 2013 and 2014. I couldn't really figure it out but I found this
"Founded in 2012 by CEO Noah Abelson and CTO Marc Angelone, ShareRoot initially focused on helping brands market themselves on Pinterest."
So initially it was a different company. The UGC platform was developed over two years and launched beginning last year as Noah said in his presentation. '
The revenue model is all in slides 15 and 16 in the presentation
http://www.stocknessmonster.com/news-item?S=SRO&E=ASX&N=741331
Tier 1 started February 2015 and charged customers 350/month.
Revenue a paltry $14,000 or so till end June. So 4 months revenue. That's 10 customers
4 * 350 * 10 = $14,000
Now we are in tier 2 where customers are charged $1,000 per month. They have more than 30 customers, buckland says 39. Not sure where that figure comes from but let's go with that
"ShareRoot currently has more than 30 paying clients, and an additional 50 in the pipeline that are currently using the platform with a view to convert into paying clients"
39 * 1,000 * 12 = $468,000 annualised revenue
Tier 3 begins August this year and will charge $4,500 per month
39 * 4,500 * 12 = $2.1 million annualised revenue
Enterprise begins September this year and charges $10,000 per month
39 * 10,000 * 12 = $4.68 million annualised revenue
They have another 40 or so trialing at the moment. Upside is quite obvious.
Fosters must have done a very bad job getting the right sticky investors. After an RTO they should hold for a few months and Fosters should get more clients in. I have a bad feeling Fosters told people to sell to collect more brokerage and basically increase their overall fees on SRO.
maybe someone like Facebook should just take them over. EV of $6m is ridiculous. I've seen documentaries on Google and such, sometimes they pay $50m for just an idea.
Noah et. al. should spend $50k or so traveling around the USA pitching this stock. With the exchange rate it'd be dirt cheap for funds to gain exposure to a Silicon Valley story with nearly 40 customers already. In a few years time people might talk about SRO as the pioneers in UGC marketing.
I give this a few more weeks, hopefully Noah can turn it around. Volume has been very low coming down but confidence is extremely low in this stock. I don't think it's justified but it's up to SRO to instill confidence.
