Pinned straw:
As expected a strong q2 quarterly update from XRG .continuing to grow pipine and ARR.
no new large contract wins i ln Q2 and that is what i will be watching for going forwards- happy to hold currently
Investing for future growth- can revenue growth continue apace?
disc- held in RL (5%)
Funny i also watched that on ausbiz and thought the exact same thing! There in lies the opportunity. The Operator XR business is much newer than the old entertainment segment and anyone who looked at this business 12-24 months ago or more would miss the change in revenue streams! In saying that reading the quarterly report would have given that information- which he clearly didnt do before hand
(i wish people on aus biz would say i dont know instead of tryjng to bluff their way through- does my head in)
@Silky84 Agreed, this was a very good quarter for XRG. Obviously the strong cashflow is the first thing that catches the attention but this was known in advance with the large Texas DPS and DoD contracts coming through. But then reading the commentary these two contracts only contributed $3.2m of the $5.2m cash generated by the Operator segment. Even without those contracts it would have been close to a record quarter regardless.
With the commentary that an additional $2.3m was received in January from those contracts the 3Q is also shaping up to be another one of strong cash generation.
The only knock is it was a slower quarter for incremental ARR/new customer wins but after some thought I will give them a pass on that one. With the US Government shutdown and the lead up to Christmas holidays it was always going to be a slow quarter for new wins (particularly the larger ones). Given the big increase in the sales pipeline you'd hope a few good wins are not too far away!