Very sensible comments. In the big scheme of things, anything is possible, but unfortunately we have to deal with the probables. Given the level of churn (which is virtually nil), and given their subscription business model, the probability that NEA will stop "making money" is pretty low at this time. The GAAP profits are illusory. What matters is operating cashflow, all $11m of it.
There is a misperception that this is a technology play. It is partially that, because the technology enables quick capture and refresh, fast uploads, acceptable resolution, and stitching software. At the nub of it, NEA is just purely the lowest cost provider having a first mover advantage in a growing market, and the challenge now is to get scale, which feeds back to lower unit costs per unit revenue, which will be where the battle will be fought in the future.
NEA Price at posting:
63.2¢ Sentiment: Hold Disclosure: Held
