Does not look good from my perspective.
Quarterly Sales have slowed down from 16-20%/ Qtr3 to 7% and QTR 4 guidence 9%
Yet there costs to operate have gone up.
And … they are issuing stocks every quarter to raise capital.
Have they bought up any companies? Ah yes… Send-Grid.
Looks like they have issued shares to raise capital for that one as the long term debt has been paid dow n
Well that explains it then. Going to be some turbulent times ahead with this one I am afraid.
The 3 Biggest concerns for me:
- The Insiders are selling off big time! Almost 120,000 Shares sold off since May this year.
- Management are not doing a very good job managing the cashflows of this business.
- They issued over 1B in Stock to boost revenue in Both Q1 and Q2 and still have not got any cash in the bank (Only $2M left after all that raising of cash.
Something has to drastically change or these guys are gonna crash and burn. They cannot just keep issuing stock to fill the coffers or the investors will just dump them hard… but there is hope, read below.
Just listened to the Q3 Conference call and … sounds like they are having teething issues with managing the scale growth they have experienced and are in the process of orders. Sounds like they are putting better systems in place as it caught them out and they have done a lot of time into looking into the Root Cause and the amount of collateral damage. Sounds like they have proactively issued approx $5Million in credits to what sounds like a hand full of customers.
All the questions from share holders about credit of that $5Million.
Others were concerned about deceleration of the market growth from +70% down to Mid 30%'s.
This was pretty much deflected, however they are definately on board building more app’s for mobile users and building a moat ahead of the pack, + they are growing a massive opportunity with in app advertising using the latest tech and algarithms and using AI to drive more taylored advertising to users.