Would be great to see them expand North American clients to earn more in USD while providing services where costs are in the local currency. I'm a big fan of the new CEO, he's really a owner operator. I think the biggest risk is lack of growth, if they normalize around 50M run rate and 10M EBITDA I'd expect the stock to trade flat for a long time. We really need to see double digit growth on the top and bottom line to get a big, big re-rating.
Its not like they have a choice... (see IFRS accounting)
My guess is that they’re probably "over-earning" by around 10%. That said, the CEO never implied that these reselling-type deals were strictly a Q4/Q1 phenomenon, so I wouldn’t be surprised if this level of reselling activity continues. And even if it doesn’t, replacing that ~10% of revenue doesn’t seem like a particularly heavy lift.
10.4m revenues for q1 while 2m wasnt reall income (contract for 3years out that cant be billed). So if you cut it off as we should we are talking of around 8.4 m revenues and ebitda of 0.5m. income from operation of 1.5m is actually a loss of 0.5m and you can see it in the free cash flow
"contractual obligations to suppliers" => might be under a different line, or summarised in for example "Accrued expenses and other current liabilities" or might be booked as an Accounts payable ...
I’d really recommend taking a moment to read through a basic accounting textbook or even just having a quick conversation with ChatGPT—both can be surprisingly helpful.
I don’t think it makes sense to debate this further until we can agree on the absolute fundamentals. This isn’t a matter of opinion; it’s a straightforward true-or-false issue and in this case, your understanding is clearly incorrect.
That’s actually not quite accurate. I’d suggest taking a look at an accounting textbook before making such statements. If you’d like, I can recommend a few good ones!
The costs and revenues are booked simultaneously, so your statements are just not accurate! See IFRS 15
Would be great to see them expand North American clients to earn more in USD while providing services where costs are in the local currency. I'm a big fan of the new CEO, he's really a owner operator. I think the biggest risk is lack of growth, if they normalize around 50M run rate and 10M EBITDA I'd expect the stock to trade flat for a long time. We really need to see double digit growth on the top and bottom line to get a big, big re-rating.
Its not like they have a choice... (see IFRS accounting)
My guess is that they’re probably "over-earning" by around 10%. That said, the CEO never implied that these reselling-type deals were strictly a Q4/Q1 phenomenon, so I wouldn’t be surprised if this level of reselling activity continues. And even if it doesn’t, replacing that ~10% of revenue doesn’t seem like a particularly heavy lift.
10.4m revenues for q1 while 2m wasnt reall income (contract for 3years out that cant be billed). So if you cut it off as we should we are talking of around 8.4 m revenues and ebitda of 0.5m. income from operation of 1.5m is actually a loss of 0.5m and you can see it in the free cash flow
Try to find in the balance sheet "contractual obligations to suppliers". There is non. I think they recognize only the future income
"contractual obligations to suppliers" => might be under a different line, or summarised in for example "Accrued expenses and other current liabilities" or might be booked as an Accounts payable ...
I’d really recommend taking a moment to read through a basic accounting textbook or even just having a quick conversation with ChatGPT—both can be surprisingly helpful.
I don’t think it makes sense to debate this further until we can agree on the absolute fundamentals. This isn’t a matter of opinion; it’s a straightforward true-or-false issue and in this case, your understanding is clearly incorrect.
Pay attention that they didnt put any future costs on thies 2m future income. So it goes directly to inflates net income.
That’s actually not quite accurate. I’d suggest taking a look at an accounting textbook before making such statements. If you’d like, I can recommend a few good ones!
The costs and revenues are booked simultaneously, so your statements are just not accurate! See IFRS 15