- Rewardle listed on the ASX with turnover of $30,000
- That's total annual turnover - not monthly
You are right, but what is the current quaterly income--$335k (excluding R&D rebate). Assuming the income stays the same, the annual income would be $1,340k, which represents a total 4400% increase. That is a pretty good job I reckon.
- “We basically took a traction story to the market and raised $4 million. We are over subscribed,” he says.
- The platform was already built and running in thousands of venues with 500,000 users and the software is pretty much the same as it was back then with a few tweaks here and there
I dont think I can agree with you regarding this statement. More importantly you have outlined the contradition yourself in the later part of your post.
- Rewardle raised another $5m in a CR, followed by another $2.8m
- So with $11.8m raised - that's not chump change - where is Rewardle at now?
- 2000 paying merchants, although it's hard to tell how much they're paying. Merchants in this space want to pay somewhere between zero and SFA for a loyalty system that doesn't make them cold hard cash
- Some great advertising contracts but they seem to come and go very quickly
I think one of the Big 4 just booked another advertisement as one of their recent update. They seem to be not going quickly.
- 4 times the number of users but who knows how many have actually transacted with the platform in the last 6 months
As I replied on the other post, you could have a glimse of the activity by looking at those parameters. Overall the activity has grown more than 30% over last 6 months from the data shown on their quaterly.
- The loyalty card wallet - that's been done before and has zero chance of making money
You are right again. But I dont think this is to increase user adherence as well as a selling point to attract new users. Why? if you have the Rewarld App turn it on by your self. What are the first thing you see right under the loyalty card icon---let me remind you, the link to the postcoders.com.au articles---which is a potential revenue raiser
- Postcoder, not a bad idea but too little too late and how is it really going to generate any significant revenue let alone profit. Those articles aren't free.
Never too late I reckon. The articles maybe aren't free but at the bottom of the website there is an icon called 'advertise'. Let us see how this works for the future. Plus, they have updated some really good articles with names mentioned for the mechants, I doubt it is all free to have their name mentioned there.
- The universal loyalty points. By the time that comes out there will be no cash left. This itself won't generate revenue
Right again. But what if there is enough cash to last for another 12 months with a CR or some other equity increase activity in the next quarter? The more Rewardle could offer the more likely they have success right?
- Without the R&D tax incentive Rewardle would currently have no cash at bank at all
- The R&D tax incentive has now been significantly tightened for software companies that have been over claiming what they've spent on actual Research Based Development. The next round of R&D won't be as generous
Possibly, but we dont know for sure.
- It's another 12 month wait for the next R&D round
- Everyone was sold on the social aspect of Rewardle, the big data, the huge payment and fintech revolution - what happened to all of these promised treasures?
Are you one of the mechants or you have some insightful information from a current active mechant about this? If not, you dont know what Rewardle has offered to the current mechants.
- We're in May now, there's been no facebook updates since Feb.
It is because facebook is no longer a trendy tool for social networking/business promoting. Dont ask me why. I quite like the fact that they send all the users an email for alerting us of the loyalty car function upgrade and later follow-up email about the issue encountered with Coles terminals.
- Minor improvement in paying merchants. Have sales and marketing all been fired to reign in costs?
This is indeed a valid concern. However the over all mechant stays on the similiar level from last quarter. I guess there have been new signed up mechants with instant fee paying to support the number? Unsure until they have the progress bar on shown again.
Does anyone need any more valid concerns? My concern is how does Ruwan sleep at night knowing that he's squandered 11 million dollars of people's hard earned cash and super. I think the business concept is a great one - it's just been wasted. All those people who bought at 5 cents, 20 cents and 33 cents now have only one hope that someone will scoop up the company. No one is going to pay a premium for this company, currently trading at 2.6 cents - if anyone buys Rewardle it'll be for less than a cent a share. In reality if you honestly wanted to buy Rewardle - what would you pay for it? Would anyone pay the $5m market cap it has now?
No.
I purchased my parcel from the 5c CR and held till now. From the time I purchased I have seen significnat ongoing improvement of income and substential reduction of operation cost. Mind you that they are focusing further reduction of operation cut for the coming quarter. What I am seeing is more of a half glass full scenario. Yes Rewardle is far from a green balance sheet and sustainable at this stage, but heaps better than the time I purchased my parcel. In general it is still a growth stock. The only fundamental thing I believe for Rewardle is that they are still the only company offers one stop shop soloution for check-out/loyalty program/online order/big data for the small busniess. Hopefully with the ongoing operational cost reduction and revenue increase, they will be able to reach self-sustainable one day. When? I dont know, but we are now a lot more closer.
Obviously do your own research - just raising some valid concerns.
RXH Price at posting:
2.6¢ Sentiment: Hold Disclosure: Held
(20min delay)