IMO more bad than good, the chart below has rev, cfo and PBT for last 6 halves, I generously adj for costs of acquisition $7.6m in pbt and cfo for last half.

Cortex for 4 months pushing up rev, although there is some underlying growth, high single digit from what i can see. NA still struggling, NZ strong. there were some bullish comments made by mgt on future rev growth FY23 est $150-170m that is 5-19% adj for Cortex, and rev of $250m by 2025, looks crazily ambitious at this stage. market will probably pay little attention to this until we some some traction esp in NA. the big negative-- ebit (normalised!) FY23 expected to be loss $5m to $0 as more investment required.

interim CFO and CEo at this stage. some large cts up for renewal this year. Uncool tech catching a bid, PPH APX IFM...? hope is not a strategy!

disc hold v small pos IRL

Hi

Listened to ERD result and my impressions are that we are in a pivotal year for ERD. the result itself was a mixed bag , IMO, and little to get you very excited taken on face value. The bullish points for me were that Cortex appears to be firing along in NA, so thats good. ERD has upped R&D expenditure (mostly capitalised) to 28% of sales. obviously spoke up benefits of this spend.

of interest was the CEO talking about the complexity of customer requirements in gaining share. This is where a customer wants specific capabilities that ERD must build or acquire. Partnerships look like the preferred path and nailing these will be important in growing. The Cortex acquisition is thought to fill some of these holes as well.

Another bull point was the CEO spoke about 15% growth expected for the industry and that ERD wants to better that rate, that would be a great outcome.

ARPU and retention were again ok without being exciting.

Overall my feeling is that the next year will be pivotal for ERD. a big R&D spend plus Cortex need to deliver. i think the market will tire of excuses if no significant momentum in sales is achieved by end of next year.

DISc held SM/IRL