I understand you can only answer so many questions in the time allowed in a Q&A. However this one was 10 mins shorter than previous ones, so some of the missed topics of mine could have been covered.
I repeat, I would like direct answers to all of my submitted questions from you in due course (as you'll obviously have other shareholders to reply to as well and that takes time to)
This is the reply to all those questions
I have addressed most of your questions below and where appropriate, referred you to the Company’s relevant ASX disclosures.
Best wishes,
Syntonic Investor Relations
Webinar - The recent webinar was designed to provide an opportunity for shareholders to hear from the management team following the recent capital raise which took place at the end of December 2018. Due to the holiday period, it was held in mid-January as many people were away at Christmas time. The management team didn’t want to delay the webcast longer than a few weeks after the capital raise. Accordingly, it was held prior to the quarterly announcement.
Recent capital raise – The recent capital raise was addressed during the webinar. You can listen to the recording here - . We understand your disappointment at the dilution caused by and the discount for the recent capital raise. It was a much-deliberated decision that was not taken lightly by the Board. Unfortunately, the Australian equity market was exceptionally tough for raising new capital for all companies at the end of last year and this impacted the price at which the raising was completed.
The recent fundraise was to accelerate the Company’s global expansion strategy and to enhance the Company’s marketing and sales efforts to quicken time to profitability for its new mobile commerce business in Brazil.
Board alignment with shareholders – The Board and executives are highly aligned with the interests of shareholders. Many have significant holdings in the Company.
Executive remuneration – As announced in the recent Quarterly, Company’s Executive Directors, Dr Gary Greenbaum, CEO and Mr Rahul Agarwal, CTO have voluntarily undertaken to forego any bonus relating to calendar year 2018. The Executive Directors took this action to demonstrate their commitment to prudent cost management.
Website – the Company has noted your concerns regarding its website and will endeavour to allocate resources towards updating it.
Dataflex – As advised in the Company’s recent Quarterly Report, Syntonic continues to work with its Turkish reseller partner AKTAY to integrate and test the Syntonic Revenue Generation Platform to enable white-labelled Freeway and DataFlex services with the three largest operators in Turkey: Türk Telekom, Turkcell and Vodafone Turkey. The Company is progressing with the installation of the technologies with deployments scheduled for later this fiscal year. The Company believes that the opportunity for DataFlex remains strong.
Revenue Opportunity – The presentation slides you are referring to relate to the estimated revenue opportunity for the Company by carrier type. They do not relate to revenue forecasts. The Company has never issued revenue forecasts.
Verizon – Syntonic’s recent Quarterly Report provides the most recent update of the contract with Verizon Wireless. It notes that Verizon Wireless has begun a strategic shift away from content services to focus on its 5G services, such as connected autonomous cars, smart communities, industrial IoT, and immersive education. As a result, the relative revenue contribution from Verizon was minimal during the quarter.
Growth strategy & revenue – The Company is committed to realising shareholder value through a growth strategy that focuses on partnerships with Tier 1 carriers and resellers. It continues to advance its global footprint and broaden its business base. This strategy has delivered record revenue, cash receipts, and active users in Q2 FY19 and demonstrates the market demand for Syntonic’s technologies and services from globally recognised mobile carriers.
Zenvia financials – As discussed in the webinar, the acquired Mobile Commerce platform will be integrated into the current Syntonic Connected Services Platform to enable a single solution for capturing the customer lifetime value from acquisition to monetisation. It would be highly unusual to report on specific products and services within a single business unit, particularly for a growth stage business.
Social Media – As you will be aware from multiple previous announcements, the business shifted its go-to-market strategy from a direct to consumer approach, to a partnership and reseller approach. Social media formed part of the Company’s previous marketing, hence the resources have been refocused on partnerships. The Company takes on board your suggestion that social media channels could form part of its corporate voice.
Institutional investors – As advised previously, the Company has an active investor marketing program in place. It is not considering another listing.
Shareholder communication – the Company is committed to providing regular shareholder communication and adheres to the ASX Rules with regard to providing equal and fair disclosure.
QAUs – As a quarterly metric, it is meaningful to provide an update on QAUs on a quarterly basis so that shareholders are able to easily evaluate the Company’s progress.
I'll let you all draw your own conclusions to the answers given by the company to my direct questions.
LOTM
SYT Price at posting:
0.5¢ Sentiment: None Disclosure: Held
