OCT - Q4, page-2

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Paddygd

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27/09/19

11:15

Post #: 40604261
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Originally posted by Tran: ↑

If Sep rev = $1.8mil . That is rev growth of 8.5% on Aug of $1.66mil.
If Sep rev = $1.9mil. That is rev growth of 14.5% on Aug of $1.66mil.

I think Oct and the whole Q4 will be very significant quarter.
Now that NetZero programme has started and Ted said to me that he was extremely busy boarding new business and will reply my email after he has a chance to breathe. So, my impression is NetZero strategy is working already and we are still in September. I believe this strategy will be smashing in terms of gaining new publishers and new revenue from Oct. My guessimate is an investment of $300000-$500000 will be deployed for Oct NetZero programme.

The biggest publisher is now back online at full capacitity to generate $300k-$500k per month.

At average 37.5% gross profit margin, each dollar deployed generates $1.6 in revenue. let's see what Oct could potentially bring to the table:

Lower case scenario:
OCT revenue = ($1.8mil*1.085) + $300k (biggest publisher) + ($300k*1.6) NetZero rev= $1.953mil + $300k + $480k = $2.73mil

Upper case scenario = ($1.9mil*1.145) +$500k (biggest publisher) + ($500k*1.6) NetZero rev = $3.47mil

That is my maths to show the potential surprises in Oct but I would be and I am sure long term investors would be very impressed to see rev of anywhere around $2.2mil for Oct because $2.2mil rev for Oct would show very great revenue growth and gives us indication of even greater revenue ahead. So, anything more than $2.2mil would be even more fantastic.

Q4 in my opinion will be absolutely smashing.

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Nice workings Tran. Would be good to see if they can make these targets. Also, seeing that a lot of the existing Net0 business will be ported at 0% GP, (for the sake of gaining new opportunities) it will be interesting to see what this does to the overall GP. Even if it dilutes it to say 20%, I'd rather see 2.2 million at 20% than 1.1m at 40%. Same same, but a whole lot different.

EN1 Price at posting: 2.4¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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