Obiously, however this is growth company so it is more about potencial of future earnings. The problem though is the fact that value of the company is not backed by as sets. It is going to look overvalued until it breaks even, hopefully H2 2016.
I personally feel positive about yesterday's announcement. I don't know how the recent institutional funding conversations progressed, but it's not unimaginable that a condition was that SNTY get control of costs as a priority - that's a good thing, and maybe they're now getting more advice.
It's slightly less exciting to not see quarterly KPIs, but the frequency of updates makes no difference to the value of the business. It may create less certainty about the trajectory, but in my opinion all KPIs continue to move in the right direction.
I work in a similar sized cloud communications (SaaS) company, and it's a trend in the software industry that companies have weak Q1s following a Q4 squeeze, with this in mind the quarter on quarter slow in ARR growth is not concerning. The RRPU is very interesting and suggests there is a lot of addressable revenue within the current base as users and customers extend use-cases and identify new opportunities to leverage the technology - this is what happens in SaaS.
Any buyers at this point at surely buying at the bottom.
Announcing a new strategy to move from rapid qrowth the quarter after rapid growth markedly declined smacks more of a convenience than a considered strategy. It's also a move that takes Synety into a model they are unfamiliar with. If they do manage to change spots it will take many months of consistent effort to gain meaningful results.. - going to have to cut more than directors pay to eke out the last placing for too long and obviously as no 'tails up' news imminent and no more quarterly reporting it's hard to see anything but steady decline in SP.
If the board didn't listen to shareholders when they come back to us to ask for more money (i.e. dilution) then we WOULD have good reason to complain. As the situation here is the opposite of this then we can have no reason to.
At least this company does appear to have a useful product and is developing an ongoing revenue stream with existing customers, unlike some of the cloud/vapour ware that is out there on AIM.
By the sound if it the BOD woke up an smelt the coffee some time back and just need to explain to us now why we are not going to be getting quarterly KPI figures to obsess about. Good. Hype time is well and truly over so now we can expect them to concentrate on growing a profitable business.
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