Pinned straw:
AI media reported a 2% decrease in revenue- the market doesnt like it- however as has been laid out here before this misses the fact that tech SaaS revenue is growing whilst the old revenue model is deliberately being phased lower.
tony reiterated his FY29 outlook which may be overly optomistic however there is a large margin of safety at todays current market cap!
encoder sales are increasing
tech sales are increasing
LEXI voice and LEXI AI are expected to contribute to revenue over the next 1-2 years.
i think the market is missing a trick here and i have topped up on todays weakenss making AIM my second largest holding in RL
keen to hear the brains trusts opinions on todays results
Am still digesting the announcement and the call but my preliminary view is:
- Very nice result all round - did not hear anything that was negative
- But my mindset and expectations going into the earnings call is that of a business in full transition mode, with heavy lifting needed, not a business that has already gone past heavy lifting and can purely accelerate - but the green shoots were absolutely there, I felt
- My conviction on the technology moat, the sharp pivot to a technology-led business, the transition to SAAS revenue, the increased deferred revenue, the sweet cash flow, and the progress thus far, went up a notch today
- The acceleration is happening, but there is still a lot of capability build happening ..... yeah baby
- I doodled "if the market does not get it, stuff it ..." (the actual words were a lot cruder ...)
- The market does not get it as it is just too impatient - OPPORTUNITY!
Topped up at 53.5c, but looks like it is still falling. 47c is the support level that I am watching - I will be topping up again closer to those levels.
This is SDR 12M ago (market expected growth, heavy lifting still happening, acceleration now happening), CAT 3+ years ago (re-platforming, heavy Capex, flat growth, now accelerating). In either cases, the market did not get it ...
Discl: Held IRL and in SM