08-27-2014, 10:49 AM
(This post was last modified: 08-27-2014, 10:51 AM by quantumvibes.)
posted by "biotechwatcher" - i have no idea whether the post is credible or not...up to the reader to decide...
"Here are highlights from long dialog with Matt Mathison:
1. The Shearman/Deloitte forensic investigation.
Shearman/Deloitte crafted the language of the April 30 and June 4 press releases. The language is directly from their report and represents the entire report. No additional report exists. The investigators were hired to address the Muddy Waters allegations and the findings were: 1. None of Muddy Waters allegations were valid; and 2. cash, revenue, acquisition costs and other financials were consistent with NQ reports. Shearman/Deloitte have presented their findings to the NYSE and other official bodies and participated in follow up discussions. All are satisfied.
2. The 20f.
NQ is pleased with MBP and comfortable that the audit will be completed before November 15. Every quarter of 2013 has gone through full audit procedures, and no restatement is expected for any period.
3. Definition of active user versus premium user.
NQ has about 150M active users of which 15-16M are premium users, defined as purchasers of either subscriptions or advertised items. NQ expects this ratio of active vs. premium to improve steadily as their offerings get more robust. Users of emerging products such as music radar and the NQI platform are not included in the total active users, but they will be included after NQ completes their 20f, and reports Q1 and Q2. Revenue from emerging products is inconsequential but not expected to stay that way.
4. The business.
Enterprise is currently about 35% of total revenue for 2013 and a larger percentage in Q1 and Q2. It is expected to continue growing as a percentage of total revenue. Advertising revenue was essentially turned on in 2013, so expect rapid growth on this front. The overall business is performing to guidance, or better.
This is not from Matt Mathison, but from my own NQ modeling effort. I expect NQ active users to double over the next 24 months and the percentage of premium users to be about 20% of that total."