GEO - GeoOP - Work Management Software

[Schrodinger]

Woeful would be doing it justice. Abismal would be closer to true reflection and a complete an utter failure would best describe performance.

This is a sinking ship with annualised recurring revenue having moved from 610k in March to 867k in Sept. Ave sale price approx $6.50 so a failure from management to increase prices.

Total cash remaining of NZD$5m at 29 Sep 14 with net cash spend in last 6 months of 2.6m. Capital raising will be inevitable for this business in the coming 12 months.

If they reach $2M revenue sometime in 2015/16 this burn will reduce substantially. Will be ntouch and go but everything depends on customer acquisition and retention.

[Harvey Specter]

If they reach $2M revenue sometime in 2015/16 this burn will reduce substantially.

How? If revenue reaches $2m per year, it is still well short of the $2.6m they spent in the last 6 months alone (and revenue calculcated on MRR is on a trailing basis!), and if Xero has shown us anything, costs need to ramp up if you want more growth

[Schrodinger]

Depending on the ARR they might have to tap the markets less. I think the latest growth rate was slightly disappointing and this may put pressure on another raise earlier than expected. Again this depends on how fast they can gain and retain customers. If they follow the Vend/XRO model then I expect them to run a loss for years to come as long as growth is good. This means they are regularly going to be raising cash and have planned for it.

[Cobber]

Depending on the ARR they might have to tap the markets less. I think the latest growth rate was slightly disappointing and this may put pressure on another raise earlier than expected. Again this depends on how fast they can gain and retain customers. If they follow the Vend/XRO model then I expect them to run a loss for years to come as long as growth is good. This means they are regularly going to be raising cash and have planned for it.

I think the chaps at Vend a lot smarter than these companies.

Although they are loosing money, their revenue is heading towards $10 mill a year.

I think if they wait before listing and get the loses under control without the glare of the market, by the time they do decide to list, it will be a more spectacular IPO with proven fundamentals behind them.

GEO looks like a company that popped the cork on a bottle of champagne the day they IPO'ed and have been hungover ever since.

[sommelier]

But Mark Weldon! And SaaS! And Churn! Losing money is good!

[Balance]

Said so from the beginning and it is all coming to pass - Mark Weldon is as useless as ten tits on a bull.

He was able to milk the NZX dry as it was a monopoly but his track record at managing the NZX is a joke - just have to look at the revolving door parade of executives. Anyone met an ex NZX executive with a good thing to say about him, the NZX board and his super sized ego?

No wonder GeoP is in the mess it is in now.

Consider investing when this company sees the light and sack Mark Weldon - he is the problem imo. Sp then will be about 3 cents imo. Please hang on in there, loser Weldon, until the sp reaches 3 cents.

[Harvey Specter]

Anyone follow @benkepes ?

A certain exCEO was overheard talking loudly in the koru lounge about capital raising plans, before flying business class. That's not going to help cash burn!

[Balance]

Anyone follow @benkepes ?

A certain exCEO was overheard talking loudly in the koru lounge about capital raising plans, before flying business class. That's not going to help cash burn!

The exCEO was probably stating the obvious - that GeoP is dead unless it raises more capital but the flying business class bit cannot be happy news for shareholders!

[BFG]

Wow, $1M in AR. Considering VML did this in one contract and PAY has over $1.6M in HY this makes the revenue vs cashburn rate HORRENDOUS.

Wonder how much Weldon will be stumping up in the next CR?

[Schrodinger]

Wow, $1M in AR. Considering VML did this in one contract and PAY has over $1.6M in HY this makes the revenue vs cashburn rate HORRENDOUS.

Wonder how much Weldon will be stumping up in the next CR?

Good not great. Interesting to know what fy15 will come in at. Might be near $1M depending on the next few months which means growth near 200%. Strange they didn't publish the subs.