Pinned straw:
Unless I missed something, a good result from Aroa.
Sales growing strongly,
and plenty of cash in the bank.
Still unprofitable, with the increased revenue mainly going into marketing.
but I like that they put a decent amount into R&D and the revenue is growing strongly.
Still making a loss, but definitely a much better result than the previous year.
Share price was down 7.4% today on the announcement of the above results, which was a surprise to me as I thought they were pretty good.
If anyone has insight into the sell-off I would appreciate the advice. I've recently doubled down from my initial toe in the water and was otherwise quite content.
Cheers.
mikebrisy
@Llati - good question.
Here's the report on Simply Wall Street ($ARX not covered on my usual service simplywallstreet.com)
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Jun 01
Full year 2023 earnings: EPS and revenues exceed analyst expectations
Full year 2023 results:
- NZ$0.001 loss per share (improved from NZ$0.025 loss in FY 2022).
- Revenue: NZ$63.4m (up 60% from FY 2022).
- Net loss: NZ$396.0k (loss narrowed 95% from FY 2022).
- Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 57%.
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So, it looks like the FY23 result wasn't a disappointment to "the market".
The only weakness I can see is that the revenue guidance for FY24 of NZ$73-76m is slightly weaker than consensus of NZ$78. That represents cc product sales growth of 25-30%, which is a significant slowdown from 81% (FY22) and 55% (FY23), and perhaps doesn't reflect such a great return on the increasing investment in sales and marketing. It is also a slower rate of growth than is expected for sector peers, such as $AVH and $PNV.
It does look like FY24 will be profitable, but still a way to go on cash flow, as FCF in FY23 was c.-$13m (I no longer have a forward model)
Because of its illiquidity, it may take a few days for the reaction to results to be digested fully.
Disc: I hold $PNV (RL and SM); no longer hold $ARX
