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Q1CC
#1
Some notable points, we'll keep adding:
  • Revenues $23M, that is $5M from iPass (half a quarter) and under $3.5M for Artilium, so that's a pretty hefty growth for core Pareteum which did less than $10M in the last quarter and now more than $14M.
  • Somewhat curious though, they also argue sequential organic growth was 33%, it seems to be 40%+
  • Backlog conversion was 101% but that's a 27 month average, implying a small decline but still well above the guided 75%-80%.
  • This might have something to do with Turner's overall lesson "sell what can be deployed immediately and stop selling tailored or custom contracts." Or "configuration versus customization."
  • They hope to profit from the latter later on by being able to charge for customization and speed it up.
  • There is also a learning effect in geographical expansion.
  • Conversion doesn't seem to hold them back and they've got the people they need, grosso modo. If true we will see operational margins and EBITDA margin expansion.
  • Indeed, G&A is growing considerably slower than revenue, declining to 33% of revenues (from 56% last year), they expect this to continue.
  • What is a barrier is market coverage, but rather than hiring more sales people, they're working on some channel strategies (no specifics provided).
  • The end of Q1 cash balance was $10.7M, they paid $2M for Devicescape drew $25 from the Post Road loan and paid off the iPass loan ($13M or so, if I remember correctly).
  • They acquired Devicescape, a strategic partner for iPass for $2M in cash and another $2M in shares. It's a leader in 'virtual WiFi networking,' opening up all sorts of location based advertising for customers.
  • Given the backlog controversy, they stressed that others had done DD, like the acquired companies (as they were largely paid in shares) and the Post Road Group (which provided them with a $50M credit line).
  • They now have 12M connections (subscribers, devices and their network usage).
  • Of the identified $19M in cost synergies from the iPass acquisition, $14.5M have been achieved which made the acquisition accretive (just), net of transaction fees and restructuring charges.
  • They listened to us (sort off)! Backlog is going to be announced only quarterly.
  • The company converted way better than the 15%/30%/55% scheme as they converted and billed year one at 20%; we expected year two at 30%, we actually billed at 43%; we expected year three at 55%, we actually billed at 89%.
  • They have over 1000 active customers (most of which come from the acquisitions).
We'll keep adding factoids and observations, feel free to add..
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#2
Be aware.....
In response to the Q1 report, Seeking Alpha 'author' Henrik Alex posted a negative TEUM article today. Check out the terrible track record of this clown. Many calls wrong. For example, his June, 2016 hit piece on RH marked the bottom at $26. It's $101 now.
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#3
(05-09-2019, 11:40 AM)philipcarl3 Wrote: Be aware.....
In response to the Q1 report, Seeking Alpha 'author' Henrik Alex posted a negative TEUM article today.  Check out the terrible track record of this clown.  Many calls wrong. For example, his June, 2016 hit piece on RH marked the bottom at $26. It's $101 now.

That's actually interesting because he just threw in his supposedly "flawless" track record on sniffing out duds into the discussion:

Quote:My track record in calling out companies engaging in pump schemes like TEUM management obviously does, has been flawless, in fact. 

Anyone who has to do that is a little too full of himself (or just ran out of arguments). IMHO.
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#4
forget about this Hernik, you know how SA works, the more viewers the more money you make and some gus are ready to say BS to get more of it....

Just one point i try to share with him but which he does not accept i that all his tehory about overstated backlog is based on a 2018 report that mentions a 0.5$/subscriber/month, whereas the last Oppenhiemer report mentions turnkey contracts where the reward for Parateum could go up to 20$/subscriber/month.
Quite game changing, isnt it????
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#5
(05-09-2019, 05:14 PM)Stuph Wrote: forget about this Hernik, you know how SA works, the more viewers the more money you make and some gus are ready to say BS to get more of it....

Just one point i try to share with him but which he does not accept i that all his tehory about overstated backlog is based on a 2018 report that mentions a 0.5$/subscriber/month, whereas the last Oppenhiemer report mentions turnkey contracts where the reward for Parateum could go up to 20$/subscriber/month.
Quite game changing, isnt it????

Yes, that's certainly an improvement, thanks for that! The backlog problem is no mystery, management itself implicitly acknowledged it when they argued only 75%-80% of backlog will be converted going forward, rather than the 100% they were used to achieve but I don't see that stopping the fun anytime soon. 

For backlog to become a barrier to growth the problem has to be enormous, as well as the company unable to strike much in the way of new deals. 

I can't see that happening anytime soon (if at all) and even Alex argues it's not going to happen this year, which is why they started harping about cash burn, which I think is likely to decrease significantly because the one-off acquisition related cost will fade, all the synergies will be achieved and there will be considerable operational leverage from not needing more people.

So basically I don't see a short thesis here, even if I share some concerns about the quality of the backlog. I might have caused some confusion, sorry for that but it's my way of dealing with an uncertain and incomplete picture, sometimes it takes groping around in the semi-dark for a while to find firmer footing.

I'm also very sensitive for any signs that there might be serious problems, I've seen what these can do.
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#6
It seems if you state a positive view on the stock on the Seeking Alpha article they are getting automatically deleted or at least a high percentage of them. I've seen a few people complain about this only to see them quickly vanish. I posted one and it was gone as well. First time I've had one deleted.
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#7
From the 8K Accounts receivable 28,645
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#8
Yonder Media Mobile (YMM) was formed in July 2018 in New York City, USA to seamlessly merge connectivity (mobile voice, messaging and data) with content (such as music, video, karaoke, lip sync, live streamed events etc.) in ways that delivers to customers money can’t buy experiences, which are then distributed by Yo Mobile, the first Mobile Virtual Experience Provider (“MVXP”) on Earth.

It is expected that Yo Mobile will launch in Colombia and Mexico in 2019.
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#9
(05-15-2019, 06:13 PM)Stuph Wrote: Yonder Media Mobile (YMM) was formed in July 2018 in New York City, USA to seamlessly merge connectivity (mobile voice, messaging and data) with content (such as music, video, karaoke, lip sync, live streamed events etc.) in ways that delivers to customers money can’t buy experiences, which are then distributed by Yo Mobile, the first Mobile Virtual Experience Provider (“MVXP”) on Earth.

It is expected that Yo Mobile will launch in Colombia and Mexico in 2019.

Well, dunno about that, the guy who runs that is really pretty dodgy and I'm not happy the company did lend him so much money. The upside of this is that cash flow is really much better, given these loans are likely to be a one-off.
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