News: RCL Readcloud Announces Acquisition Of Ripponlea Institute, page-7

The Good:
$7m in the bank
~$8m+ revenue
break even EBITDA likely
FY21organic yoy direct curriculum growth
inorganic acquisitive growth providing cross-selling opps
only a $40m market cap!

The Bad:
We were also very close to break even EBITDA last FY+
Customer churn which wasn’t present before is now happening.
economies of scale still not being realised (but it does feel like we’re on the cusp of that)

The Ugly:
VET numbers went down in consecutive reports - inconsistencies are worth keeping an eye on.
Whether it’d be from an administrative mistake or numbers are going down it does not read well. If it’s administrative it shows a lack of acquaintance between management and our numbers. I think I’d notice if there was an additional ~$1m worth of users listed in our figures in the VET space. If it’s churn....well that’s obviously concerning but not entirely shocking since courses have a 2 year cycle but obviously not ideal. Sit and wait, I guess *shrugs shoulders*