TSK - TASK Group Holdings

[Rawz]

Revenue up just 15% but expenses up ~ 50%. Hmmm

Kind of a chicken and egg scenario. You need the people before you can get the customers. That was the feedback prior to the cap raise from customers they were pitching too. Need more back office and front line.

[Balance]

Revenue up just 15% but expenses up ~ 50%. Hmmm

That's because the McDonalds' deal is a bleeder imo.

Shareholders better hope that PX1 lands some contracts soon as we have seen similar things happen with Provenco & Wynyard, when initial high profile deals (requiring high ongoing servicing & maintenance costs) did not lead to additional profitable deals.

[winner69]

Plexure not really a tech company ....more of a marketing services company who use some tech

And an expensive services model to boot ..with an ever increasing number of expensive people to keep things going

[Balance]

Plexure not really a tech company ....more of a marketing services company who use some tech

And an expensive services model to boot ..with an ever increasing number of expensive people to keep things going

My hats off to the company then for raising the amount of capital that they have, at the sp they were able to achieve last year.

The funds raised will give them time as well as options to evolve their business model hopefully to a profitable platform.

[ecuttel]

That's because the McDonalds' deal is a bleeder imo.

Shareholders better hope that PX1 lands some contracts soon as we have seen similar things happen with Provenco & Wynyard, when initial high profile deals (requiring high ongoing servicing & maintenance costs) did not lead to additional profitable deals.

Looks like they are trying to negotiate a better deal with McD... Perhaps based on users?? revenue up 15% but App users up 23%

"2. The contract with McDonalds (which accounts for 94% of Plexure revenue) doesn’t align revenue with usage. Solution Dcurrently in contract renegotiation with McDonalds on pricing."

Suppose it will all depend on the added value the app users are bringing to McD to how successful that negotiation will be...

[Balance]

Looks like they are trying to negotiate a better deal with McD... Perhaps based on users?? revenue up 15% but App users up 23%

"2. The contract with McDonalds (which accounts for 94% of Plexure revenue) doesn’t align revenue with usage. Solution Dcurrently in contract renegotiation with McDonalds on pricing."

Suppose it will all depend on the added value the app users are bringing to McD to how successful that negotiation will be...

That is a good way to go as it certainly will not be in the interest of McDonalds to have PX1 unable to service its contract in future.

[Schrodinger]

Revenue increased. Not all bad. Trading 3.7x sales. For a tech company that is cheap.

All it is going to take is a couple of new customer signings and it will be trading back over $1 buck. Did I read that they were confident that some in the pipeline would be finalized?

As pointed out above they have enough cash on hand to see through a few more years. I am confident that a few customers will be signed up in this period.

Unfortunately I am sitting on a loss with these but I don't see any point in bailing now as nothing has really changed.

And yet PEB has $5M revenue and valued at $800M.

[Schrodinger]

Plexure not really a tech company ....more of a marketing services company who use some tech

And an expensive services model to boot ..with an ever increasing number of expensive people to keep things going

Silly comment they are tech with a little service - that can be seen from looking at the subscription revenues. Their dev team is large and the platform is complex.

[Schrodinger]

As I wrote a while ago, the McDonalds' deal imo is a cash & profit bleeder and everything which has transpired since affirms in my mind that the deal is indeed a bleeder.

The deal has given PX1 credibility but the credibility gained was a double edged sword - the negative being that PX1 is locked out of marketing & offering its services to other fast food companies (save White Castle which was presumably WIP at that time).

PX1 must use the credibility to land more deals (outside of the fast food industry) to scale up but so far, I can only see staff numbers and costs increasing (as I expected) to service the McDonalds contract without any additional contracts being won?

So looks like it is still a case of waiting (or hoping) for PX1 to land a few more highly profitable contracts outside of McDonalds & the fast food industry. What are the chances given the promises made of new contracts last year (when PX1 was raising funds) and the company is now not giving guidance for the year ahead?

Worst case Maccas buys them for $500M in 2 yrs best case ARR goes to $200M and they are worth $1B+ in 4 yrs.

[Schrodinger]

Revenue up just 15% but expenses up ~ 50%. Hmmm

Covid volumes down??