I got the below as a response. Looks like Gross Revenue is...

I got the below as a response. Looks like Gross Revenue is before rebates etc so part of that revenue doesn't really exist?

Also underlying FY20-Q1 was $9.7m Gross Revenue (because $4.5m was moved out from FY19-Q4 and into FY20-Q1) and $12.7m Cash Reciepts - which is the catch up I was looking for on folks behind on payment.

So that's why the share price pressure, FY20-Q1 on an underlying basis really struggled. But the upside is stated below in the response too (new channels brought online).

I'm a bit concerned about the hand waving about Gross Revenue in their company announcements, so my advice is focus on cash receipts and not revenue (because the revenue figures are somewhat opaque).

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Your email has come to me as GRACosway manage Bubs Australia’s investor inquiries. The difference between receipts from customers and gross revenue is to do with the timing of payments as you indicate and also the trade spending which represents the volume rebates and marketing contribution. Theoretically, if our payment terms with all customers are 30 days, then the difference between cash receipts and net revenue (gross revenue less trade spending) would represent the sales we did in the third month of that quarter. In reality, our payment terms with customers vary from 30 days to 90 days. As a result, the gap is expected to increase as our monthly sales increases each year. Your assumption about FY20-Q1 is correct. In Q1, we have focused on onboarding our new partners Beingmate, Alibaba and Kidswant. Sales through these new direct channels had only just begun toward the end of the previous quarter, while managing in-market/in-China inventory during the transition.
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