100% sold out now. Why:

1) 2nd or it is 3rd consecutive guidance downgrade.

2) Management are poor capital allocators, as exemplified by the disastrous Vault Intelligence acquisition.

3) Software platform not as sticky as it seems, as exemplified by loss of key customer.

4) Failing to execute sales pipeline, as exemplified by "big deal" flagged to be landed by end of Q1 - We are still waiting.

Big fail on my part, I should of sold out at the previous downgrade - all the above issues were plain to see then.

Disappointing result, impacted by the loss in revenue from Newmont. Key takeaways:

• Q1 churn 5.7%, due to Newmont ceasing, and in some cases cancelling roll out of Damstra platform. Newmont has advised they will no longer centrally manage mine sites, and allow individual mines to manage / implement their software applications.
• COVID impacting revenue, due to less site staff.
• 9 clients added - up 5% on previous quarter.
• Revenue of $6.3 million, up just 20% on PCP.
• ARR down from $35 M to $29.3 M due to loss of Newmont contracts.
• Still in the process of closing large customer deal - trial completed and undergoing negotiations.

DISC - I HOLD

Annual Results released, and interesting takeawys from earnings call:

1) Revenue for FY2021 of $27.4 M (excludes about $1.7 M of Vault revenue under contractual dispute).  

2) Gross margin improvement to 79%, up form 69%. 

3) ARR now $34.5M (vs $21.2 M pcp) 

4) Churn is less than 1%, demonstrating how sticky Damstra's software / platform is.  

5)   70 of 200 employees are engaged in R & D, including the development of the EPP (Enterprise Protection Platform), and AI driven protection development.  Increasing US team to 30 people in FY2022, and seeking to grow team to 250-260 peoplei in FY 2022.  Losts of development, including the development of intelligent workflows, digital forms (compliance streamlining).  

6) 60% of revenue growth in FY2021 from new customers, 40% of revenue growth form existing customers.  

7) EPP being sold as the equivalent to CRM and ERM platforms for workplace risk / safety, and this is getting broad acceptance in the US.  

8) Pipeline: International miner (40 k employees) compelted tirals this month, with negotionns to commence in September, + 3 US gold miners, 1 diamond miner, 1 lage healthcare co, and 1 large Us construction co, initiating trials.  

9) targeting free cashflow breakeven in FY2022.  

10) Management report they don't like riasing cpaital & diluting shareholders, hence why they hav ethe $10 M debt facility in order to minimise / avoid further capital raisings.  

11) Key learnings from FY2021.  Damstra management have learnt they need to improve the visibility / deepening of their sales pipeline, and this is a key focus for FY2022.  

DISC - I HOLD.