SKO - Serko.com

[Leftfield]

Thanks Balance..... part of my motivation was keeping my buy button busy so I didn't sell any of my ATM holdings at yesterday's crazy prices.

Feeling much better today both on the ATM and SKO fronts!

ps thanks for the update from your broker. Sounds like a rare wise broker!

[silu]

Good on you!

One of my brokers sent me a note on a presentation done by Serko yesterday. Key points to come out of the presentation:

1. No financials discussed as Serko is reporting next week.

2. Company is obviously going well with the Zeno platform being used by the majority of big corporate users in Australasia > 50% market share.

3. Solid platform in place to scale the business.

4. Serko very confident now about taking on the States & other markets - hence the build up of key personnel and operational base.

5. Darrin Grafton (who presented) said institutions had been concerned and kept asking about how Serko is going to get its global and US customers from.
He said that was what Serko has been focusing on in the last 2 years as a public listed company - firstly, the alliances and agreements that Serko has made with the likes of APTI will see Zeno rolled out to over 55 countries, and secondly, many of the existing clients are global anyway.

6. The industry is going through massive M&A with the likes of Amex setting the pace. Amex bought KDS, Mezi and Hogg Robinson in the same space as Serko.

7. Serko is a much bigger player, a more complete and multi-dimensional travel technology company than the three that Amex acquired and yet Amex paid US$160m for one of them!

Happy holder and happy to buy more if I was around yesterday when the sp dropped to $2.71!

Thanks for sharing this balance.

[Balance]

Thanks Balance..... part of my motivation was keeping my buy button busy so I didn't sell any of my ATM holdings at yesterday's crazy prices.

Feeling much better today both on the ATM and SKO fronts!

ps thanks for the update from your broker. Sounds like a rare wise broker!

Not sure about wise!

But certainly good at providing information.

In this case, not research but a brief summary of the company's presentation.

I suspect Darrin will be making the same sort of presentations after the results are announced next week (23 May) to institutions and investors in Australia.

Hard to see the company not getting a good reception with such a good story.

PS. As usual, DYOR. I do put my money where my mouth is and of course, hope it does not turn sour!

[Balance]

https://www.gep.com/mind/blog/big-sh...x-acquires-hrg

A bit more information on the massive consolidation and race to adopt technology-oriented strategy rather than the traditional service-based model.

So Amex paid US$575m (vs Serko's US$150m current market cap) to bulk up in the sector.

Seems to me that Serko is in a great position to help the industry consolidation!

[Everwood]

I recently purchase some shares in the company. I originally said I was intending to hold off purchase anything until I saw a correction in the market after selling my shares in Xero, but I have a good feeling that Serko has a promising future after doing my own research.

I'm looking forward to the results on Wednesday and the Australian listing in June

[Everwood]

The full year results have been released https://www.nzx.com/announcements/318318

[silu]

Serko delivers maiden annual profit, sales up 28%
Full year net profit before tax of $2.0 million, representing a $5.3 million turnaround on the prior year loss.
Good progress is being made on Northern Hemisphere expansion.
Serko targeting Foreign Exempt Listing on the ASX in June.
Highlights:
• Total operating revenue1
rises 28% to $18.3 million with recurring product revenue rising 27%
to $16.4 million. Total income (including grants) rises 25% to $19.3 million.
• Profit before tax rises to $2.0 million from a $3.3 million loss in the prior year, representing a
$5.3 million turnaround.
• EBITDA2
rises to $2.2 million from a $2.5 million loss in the prior year, representing a $4.7
million turnaround.
• Online transactions grow 20% on the previous year.
• Annualised Transactional Monthly Revenue (ATMR)3
, an indicator of future recurring product
revenue rises 24% to $18.4 million.
• Operating expenses decrease by 6% to $17.7 million.
• Cash flow positive with an increase in cash balances of $0.8m to $5.2 million from $4.45 million
in the prior year

[Leftfield]

Serko delivers maiden annual profit, sales up 28%
Full year net profit before tax of $2.0 million, representing a $5.3 million turnaround on the prior year loss.
Good progress is being made on Northern Hemisphere expansion.
Serko targeting Foreign Exempt Listing on the ASX in June.
Highlights:
• Total operating revenue1
rises 28% to $18.3 million with recurring product revenue rising 27%
to $16.4 million. Total income (including grants) rises 25% to $19.3 million.
• Profit before tax rises to $2.0 million from a $3.3 million loss in the prior year, representing a
$5.3 million turnaround.
• EBITDA2
rises to $2.2 million from a $2.5 million loss in the prior year, representing a $4.7
million turnaround.
• Online transactions grow 20% on the previous year.
• Annualised Transactional Monthly Revenue (ATMR)3
, an indicator of future recurring product
revenue rises 24% to $18.4 million.
• Operating expenses decrease by 6% to $17.7 million.
• Cash flow positive with an increase in cash balances of $0.8m to $5.2 million from $4.45 million
in the prior year

I'm happy. Onwards and upwards. (Well positioned.)

[silu]

I can't see anything in profit announcement or outlook statement that would make current holders sell out. However it will bring in more potential investors who may have waited whether Serko can fulfill on their promise to become profitable in 2018 (they have broken that promise once before). I can see a little bit of a squeeze happening with the SP being pushed slightly higher.

ASX listing will be interesting - I only own one share in this industry (RXP) on the ASX but valuations are low.

[blobbles]

Very nice, can't find anything to complain about! Growth could be higher, but that is always the case. A software company with a profit at this stage is a stand out!