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The fact there have been no announcements this quarter is...

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DavidCall

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100

27/06/22

23:01

Post #: 62237494
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Originally posted by yurickamine: ↑

I think people who think that IHR isn't raising money in the next 6 month is delusional. You can't cut costs $9m of costs out of this business and keep a management team. It's a technology business where you need support and they don't nearly have enough revenue to operate a profitable business, especially when you have overseas operations. It's a fixed cost intensive business at the moment and that's just the reality until they can get some scale (which they don't, its $6m of ARR....).

Look at their track record of marrying up "contracted revenue" with "invoiced revenue" and then with cash receipts. Cash receipts of $1.4m last quarter so annualise that and you get $5.6m which will include say $1m of one-off implementation costs so you have $4.6m of subscription revenue of ARR actually being paid vs. their current ARR of $6.6m. The $4.6m is closer to their March 2021 ARR of $3.2m than it is to March 2021.

Don't get me wrong, I think this is a good business with a good product but it needs money and they're in a tough position. They should have raised money 12-18 months ago when the share price was $0.30+ but Rob kept communicating to insto's that it won't need to raise money and kept thinking the business was worth more (it was 20x ARR.... burning cash and more cash at that point) . Look at LiveHire, a much worse business/product offering but they opportunistically raised capital and did it well and they're share price only halved (prior to their recent announcement) but their was less concerns about having enough cash.

This quarter is going to be very interesting from a contracted ARR number and given the announcements have been quiet, if there isn't some decent growth and we're already in a bear tech market, this thing will go lower and be forced to raise equity at a horrible valuation. In particular given the July to Dec period is much slower from a customer growth perspective given the holiday period at the end of the year where things will shutdown in Nov and won't come back to fruition till late January.

Once they raise capital, I'll definitely be buying back in.

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The fact there have been no announcements this quarter is irrelevant IMO. Remember Matt is in charge now and perhaps managing shareholder expectations is part of his MO.

In the past Rob has made announcements that to be honest really shouldn’t have been released to the market because they weren’t particularly game changing.

Im looking forward to the next C4. I’m expecting a significant drop in cash burn and strong AAR growth for quarter…

Cintra is kicking into gear as well… I think your underestimating Matt’s leadership capabilities IMO.

GLTA..

IHR Price at posting: 5.3¢ Sentiment: Buy Disclosure: Held
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