Q: How do you view the latest results? Do you see increased stock price in the future, and what would you expect in terms of time. What are the headwinds for this company?
5i Research Answer:
EPS of -4c missed estimates of -3.5c; revenue of $29M beat estimates of $27.2M. EBITDA was negative $0.4M vs estimates +$0.2M. Canaccord cut its rating to 'speculative buy'. Revenue growth was decent at 17%. Self-service revenue was up only slightly, and was 29% of total. Margins slipped 2 points. It is hard to get excited here. Growth is lagging US peers, with some reporting 25%+ growth. But half the market cap is cash, and it has a buyback in place. EPS is expected to rise sharply next year based on consensus. But economic/tariff headwinds are a concern, and its small size and disappointing history make it hard for new investors to step up and buy. We might expect $2.25 over 18 months, in a normal market.