RE:I listened to the recording of the conference callHertevald wrote: or at least, the q & a portion. A question was asked about the decline in revenue from Q3 to Q4 and it was finally acknowledged that a major client of the GSX product did not renew its subscription for 2021. Sadly, the obvious supplementary question, "What reason did this customer give for no longer wanting this service?" was not asked.
FWIW, Krishnaratne seems to be the brightest of the three analysts covering Martello.
Thank you for catching that. I will share my two cents for those interested.
I was interested into the company thinking that they might have reached a turning corner, showing modest growth and positive momentum taping into the growing DEM segment, but this is not reassuing at all. I'm surprised by the decline in reported revenue and concerned with GSX not showing any growth at all. In fact, it is very concerning.
Yes, the DEM market is expected to grow, but you also need to be able to successfully maintain and increase your portion of that growing market share. That said, with what management showed and the way that they reported their results, I'm not confident in their product and abilities at all to execute. Their results do not align at all with all their talk, pumping their DEM segment lately. I wasn't expecting double digits growth yet, but to show zero growth and declining revenue in all other segments is very poor performance.
I'm out and not touching this. There are much better investments elsewhere. Staying in this stock is an opportunity cost.
Have a great week, good luck to all.