ERD
ERD
Financials
Pinned straw:
Added 12 months ago
FY23 Results are out.
While it looks okay at a glance, I have a few issues with it.
- 6-9% revenue guidance for FY24 is too slow. Has been a distinct shift from the 10-30% growth talk from just a couple of years back
- Cashflow neutral in FY25 and then positive in FY26. That's pretty far off for a company that burned $11m in 2H ($36m for the year) with about $27m of combined debt and cash headroom.
- 3G is being shutdown in NZ and Aus, and the company needs to replace 80k units in a bit over a year (or revert to 2G). Awful headwind.
I'm glass half empty on this one.
thunderhead
12 months ago
Agreed. Stiff headwinds for a business that is already precariously positioned financially. What a disappointing end to a promising thesis.
It's hard to take guidance on face value when the recent track record of delivering against initial expectations has been poor too.
11
Strawman
12 months ago
Excellent points @mushroompanda
The ultra low liquidity with shares makes things a bit harder too. That alone doesn't usually put me off (sadly, I'm not working with million here), but you at least want some tailwinds for the business when that's true.
15