Financials (FY21)

Finally found a few minutes to review the financial statements for FY21 (better late than never), and boy am I impressed. Sure - I read the highlights package (which was really revenue up 183%), but when you unpack it there's such a great story embedded.

One thing we've talked about in the past is "sales momentum" - which we typically look to new contracts for (this is what we continue to strive for). We've also talked about TMall stores, but perhaps have not given so much weight to some of the other channels to market (e.g. Murray Organics through CostCo, Cherries and other "App" driven sales). So - whilst new contracts give us a sense that we are building, let's focus on some numbers.

Reported: Revenue up 183% > FY20 3.397m to FY21 9.611m.... <--- Most Understated Headline Ever???

Digging in for some meatier data points: (FY20 v FY21)

1) Total Customer Contract Revenue UP 207.75% (2.97m to 9.13m)
2) Total Product/Platform Revenue UP 1194.28% (458k to 5.93m)
3) Total China Revenue UP 565.42% (1.09m to 7.22m)

These 3 data points are embedded in the numbers (and there is some overlap when you cut it these ways), but the overall view is supressed by the fact that the 183% highlight includes Digital Marketing Services (up only 27.6%), Australia Revenue (up only 6.87%) and Other Revenue (up 11.48%). When you cut it into the growth areas - Platform/Goods, China... WOW, just WOW.

But hey - how about we go further. Let's isolate only FY21 second half (we do this by subtracting the full result in the annual financials from the half year report and compare it to the 1st half of FY21 - i.e. how much have we grown in the final 6 months of the year.... (1H FY21 v 2H FY21)

1) Product/Platform revenue was 595.80% higher in 2H than in 1H (5.19m v 745k)
2) China revenue was up 379.70% in 2H (5.98m v 1.25m)
3) Even Digital Marketing Services was up in 2H (53.66%) as was Australia revenue (52.32%).

So - how good was the 2nd half of the year? If I gave 2 x WOWs for the FY21 v FY20 comparison, then I'd be here all day re-stating the wow's to compare on this one. To me, this is ridiculously compelling. The Run-Rate here is incredible!

The big side-note.... how quickly can we get profit? How much scale do we need?

There are 3 items listed as "expenses" on the P/L related to products/services. Let's call these COGS for the moment. The analysis actually shows a reduction in Gross Margins over the same time as the huge revenue expansion... so, there's the potential skid-mark. Will this continue?... or if we keep piling on revenue, will this eventually turn? That's probably the question that decides how quickly I can retire...

GLTAH. I'm continuing to dig into the coffers for this one... Back up the truck and wait... the market will get it... eventually.