I sent the following email to Ted last night:
“Hi Ted,
I would first like to congratulate you and your team on the continual increase in revenue!
I noticed on all your recent announcements there have been information and figure values on increase in revenue, but there has never been any figures published around costs. Are you in a position to highlight and provide the correlated figures for costs against revenue as I am sure this will bring the noise down on Hotcopper and put shareholders mind at rest.
It would be really beneficial if you could includes costs against revenue in any future revenue related announcements as this will allow shareholders to work out estimated profits and this will stop idiots on HC and twitter specualting and posting unsubstantiated BS with their downramping and fear mongering and I think this information will help maintain a base for a steady SP.
I look forward to receiving your prompt reply.”I received the following response from Ted to which he has given me permission to share, and hopefully this will stop all the BS noise on HC around costs versus revenue!!Hi xxxx,
Feel free to publish this, btw. As mentioned before, costs are around US$375k / month currently (opex, excluding depreciation, amortization, interest expense, share based payments, ie non-cash items) and has not changed. Gross margins have stayed consistent at 40-41%, as mentioned in the last ann.
I’ve noted this many times in my anns last year, that our business does NOT have scalable opex and that it’s a fixed-cost business where software generates 100% of the revenue and whether it’s $5 or $50m, the opex is the same.
People will leverage anything to change sentiment for their personal advantage - this should be illegal as it’s manipulation and these people are not experts and have no credibility or licenses. They don’t realize that they’re compromising the livelihoods of other people, not just mom & pop investors, but innocent and hardworking people who work at this company. The funny thing is, these manipulators will try to change sentiment for small gains (in proportion to market cap); I watch some of this and the people who make these statements and their transaction history. They talk big game but are making 4 figure trades lol ($).
Thanks in advance!
ted dhanik
ceo
engage:BDR
9220 sunset blvd.Ste 100
West Hollywood,
ca 90069(310) 954-0751 x 709 office
(310) 861-5396 fax
[email protected]linkedin.com/in/teddhanikStock ticker | EN1
