IMO the sparkle of this company has faded, this is just another story of a company that cannot control it's costs. You can dress it up, but the market needs to see a path to profit with this company. Things that stick out here and just the lack of commentary from them on some of the items.
1. Cash EBTDA (5.6m) YTD - on track for a (6.5m) - (7m) loss for the year. Hows the creative accounting here leaving out 0.5m in write offs
2. The key to profit is the loan book, not originations. The book is crawling along to that magical 1b number. This was a goal they said they would achieve by CY2022. $98m, $90m, $91m, $80m - growth in the book over previous Q's. Even at a growth of $100m in the book each 3 Q's to Dec. Balance of $963m. Feels like a grind here to get to $1b, notice they are now mentioning a $3b milestone.
3. Average credit score is a fluff metric (did you know you can pull your own credit score from multiple sources and get a different number). The key is the 90+ arrears, been jumping up over the last two quarters. This is now filtering in the loan write offs above (expect that number to jump) in the following Q's with the delay in data and write offs.
4. This is perhaps my favourite, tucked away on the last page. The very definition of pigs at the trough. Imagine signing this off at the board level. Hey we have given you so many freebies, you have created a tax issue for yourself. Love that bit about manage shareholding balances. Real leadership would pay on market rates for the facility, as a show of faith to the company product.
