"Serko will undertake targeted investment to optimise customer engagement and extend the offering across global markets to maximise the potential of the opportunity."
That really is a shocking corp speak line. Not doing themselves any favours with that kind of babble, even if it's true.
Comes down to credibility which Serko has in abundance.
Compare & contrast with the PX1 of the world - all talk and no delivery.
A sad and surprising story... How is a company worth well over $600m given FY22 revenue will be below $20m? which itself was only up a few million on the $17m in revenue for FY21 (which itself was down from $27m in FY20)... hardly a growth story, a patchy story at best, and certainly a surprising story, yet apparently worth 33x FY22 revenue right now...?
Edit: I nearly fell off my chair when I saw in September of just last year Serko was a $1b company... $1b big ones (just a few months ago) for a company with the below total income track record is truly astounding!
FY19 - $24.6m
FY20 - $26.8m
FY21 - $16.9m
FY22 - $19m?
Last edited by trader_jackson; 03-02-2022 at 09:51 AM.
Serko provided a trading update this morning downgrading revenue guidance for FY22 to NZ$18-20.5m (from NZ$21-25m). The new guidance range is 11-22% lower than current consensus revenue of NZ$23.1m with the reduction in travel volumes in December/January exacerbated by the ongoing influence of COVID and its variants. Booking for business volumes have been impacted but are now back to 90% of October 2021 volumes and whilst ANZ revenues were in line with expectations up to the end of December 21, January has been soft with NZ demand significantly impacted. The low end of the new revenue range assumes volumes in each market over February and March are materially lower than the last week of January with the high end of the range assuming a gradual improvement in transaction volumes reflecting normal seasonality. Average monthly cash burn is expected to be $4m (consistent with the guidance provided last November). SKO closed -1% yesterday…and while we expect it to underperform today it is already -24% YTD so to a degree is anticipated …
From Craigs
BTC went to $69K and now $16K. Good thing I’ve been warning you since it was $3K! I was right!
I put up a couple of posts earlier this year questioning the astronomical valuation SKO was trading at. It is still incredible to think this is still valued at $600m.
Most I would pay is 10x revenue. I would be fair and price it on FY20 revenue (before covid) so say $260m valuation. Fair SP is $2.17 for me.
Even prior to covid the revenue growth was nothing special. 5 year CAGR was ~15%. Maybe 10x revenue multiple is generous?
Originally Posted by CraftyBeer
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