Originally posted by Dazedandconfused
Negatives as I read them...
*Rosie is a bit of a dud.... no engagements as a result of the EXL tie up.... that can only mean that FGO misjudged their target market's needs.
*The number of engagements has only increased by 2 in the last quarter which is very slow growth.
*The Insuretch conference didn't result in any sales.
Positives...
*Management realistically responding to their situation and reducing cash burn. $6.9M in bank gives 10 months runway and they state they will be reducing cash burn further next qtr.
*2 clients have concluded trials and now reviewing 'next steps'... that holds out the chance for 2 new MRR's in coming months... plus 3 tire kickers who seem to have requested further proposals.
*According to the investor presentation released in Oct 2018 FGO stated they had "13 late stage potential pilots qualified" which I am assuming means proposals and now they are reporting "100%'' growth on that number... so possibly 26 active discussions at this time.
*The SOC2 type2 certification is worth something in terms of marketing.
We finally have some way to work out how much FGO is getting paid for things. CUA is basically running 'Maggie' and FGO is reporting $25k cash receipts for Q2 [which will be CUA]... so Maggie is a $100k/year revenue earner. Nationwide was invoiced 6 months in advance but it is recognized each 3 months so the $137k x's 2 = $275k which since they are running 'Rosie' is what that is worth per year.
They are reporting they have issued invoices for $195k which will be received "early 2019" so in fact revenues are increasing...
Although they are reporting cuts to the staff I would like to have had more specific info on where the cuts are being made... is it IT back-end, sales team or what? The management hire of Bob Hilborn... is that replacing someone else or an additional person?
Appreciate the summary. Just on you last point about staff. They have cut from 43 to 26. That's 40% HUGE!! Think of the morale of the team! Who next will be their primary thought for the next 3 months. Then there is the question of why these 17 staff were employed in the first place. If the scenario was that they were doing a "Valuable" job last quarter then who picks up that work load? If they were "less than productive" then how did management allow that to happen! Either way Cat is still jet setting while the rest of the team sweat or review their resumes for their next opportunity. It can't be a good environment to work in at the moment and therefore that would reflect on their customer engagement. Just waiting for Cat to say "It's been a wonderful ride but my time is up and I have to leave and let others take FGO to the next stage!!"
(20min delay)