Its trading less than half revenue multiple so wouldnt surprise me... just need a bit of light at the end of the tunnel in the form of a solid outlook for FY24 and beyond
Nothing really new in here. SP is trading cheap compared to revenue. Close to cashflow break even. Clear improvement from H1 to H2. $10m cost savings FY23 and looking for another $10m FY24.
Not much of a forecast with revenue guidance to only increase high single digits... maybe just leaving some room for upgrades if they get some big fleet wins in NA market.
Financial Highlights • Normalised revenue of $165.3m was above guidance ($159m to $164m). Reported Revenue increased from $114.9m in FY22 to $174.9m for FY23 ( 52% increase). This reflects a full 12-month contribution from Coretex and is normalised for a one-off acquisition accounting adjustment of $9.6m relating to the Coretex merger. Growth in revenue was delivered across all markets. • EBIT improved from a loss of $7.2m in FY22 to a profit of $1.7m, reflecting the recognition of one-off acquisition revenue and integration costs. Normalised for those one-off items, EBIT is a loss of $4.5m at the midpoint of the company’s guidance (loss between $3m and $6m). • Annualised Monthly Recurring Revenue increased by $19.1m (14.2%). From $134.6m in FY22 to $153.7m in FY23, reflecting growth across all markets and a FX benefit of $8.6m. • Free Cash Flow improved from an outflow of $45.1m in FY22 to an outflow of $29.9m in FY23. This included a clear improvement throughout the year, with the 1H23 FCF outflow of $21.7m effectively halving to $8.2m in 2H23. Available liquidity (debt facility headroom + cash) was $27.5m at the end of March 2023.
i thought it was a terrible report ... revenue increase for next yr is dismal for a tech stock and there still burning a large amount of cash probably run out before there cash flow positive
i thought it was a terrible report ... revenue increase for next yr is dismal for a tech stock and there still burning a large amount of cash probably run out before there cash flow positive
they stop the cash burn this year and then go positive next FY.
Agree with the revenue increase outlook.. pathetic!! Unless there is a bit of sandbagging in it..
I thought the underlying problem is the cost of equipment replacement due to the closure of 3G and move to 4G in lieu and the capital spend involved as a consequence, which will drag on the result for FY24 and FY25?
This is a 2yr turn around story if the strategy can be achieved. So holders need to be patient.
market likes the forecast around cashflow i reckon.. or maybe just so cheap on a revenue multiple vs the likes of TSK or SKO etc that its moving back towards 1x revenue multiple...?
the selling from leaving the nzx50 pushed this too low.... 52cents was crazy. all weak hands are out maybe and this heading back to a 1x revenue multiple which means $1.46 per share.....
see what happens over the coming months. just needs a few good contract win announcements like what TSK did. And a couple of guidance improvements which lets be honest wont be hard given they have only said FY24 will increase high single digits. wont be hard to 'upgrade' that
market likes the forecast around cashflow i reckon.. or maybe just so cheap on a revenue multiple vs the likes of TSK or SKO etc that its moving back towards 1x revenue multiple...?
Hmm - valuing a long established loss generator at x times revenue is a bit funny way to do it.
Anybody can generate high revenues if they don't need to worry about making money.
Remember - while Eroad's earnings make it look like a start up, it is a long established company with ageing technology and lots of experience in disappointing their shareholders.
Lost count of how many turnarounds they already had in the last decade or so. Might make the observers dizzy, but so far they didn't reduce the suffering of the shareholders.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Originally Posted by winner69
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