RE:RE:RE:Does anyone know why the stock has fallen?I think one of the important issues is the transparancy. We have no numbers about how many people are using it for buying things in apps / mobile sites.
Mark Elfenbein said in September that they receive around 3000 search requests per day. With the new clients Zappos.com, Shoe Carnival, Urban Outfitters and Best Buy this numbers can reach 10000 (specially with the main target group of Urban Outfitters).
I think that should be a realistic number. But this number also include a lot of users who want only try out new features. If they will use it to buy is another question.
In the last conference call Mark Elfenbein said that the downloads of the Home Depot App increased because of the visual search feature. Also that Home Depot advertises the technologie actively.
Example:
https://drive.google.com/file/d/0B9Y2d6axfcEDNUUwZDNQNzhuTHM/view?pli=1
Neiman Marcus expanded their visual seach content to all other categories after shoes and bags only.
EuroPacific said, that on the Slyce Invest conference, JCPenney said that they choosed Slyce because they have the best technology and have a lot of retail experience.
Zappos.com will use the visual search technology although his parent company (AMAZON) also has a visual search technology.
So I believe that there is demand for visual search.
Slyce had a high cash burn and (in compare) a low revenue in the first year. Mark Elfenbein said in the last call that they are cutting the expenses what will influence the next quarter positively.
Remember, Slyce is on the market since last year. They have contracts with big retailers like ToysRus, Home Depot, JC Penney, Urban Outfitters, Best Buy etc...
The average base price for a license is $10.000 (snap to buy).
But this price is without extras like higher search volume, coupons author, provision etc. etc.
In the quarter ended on July 31st they had follow customers of visual search technology: JCPenney, ToysRus, Neiman Marcus, Tillys and Home Depot (visual search in the Home Depot app launched mid of July).
Mainly this customers should be the reason for the revenue result of $518k.
Now, with the new customers and featuers we should see soon a revenue > 1 Mio.
I do not believe that this happened in the quarter August-November but the next one should bring it.
That was a message from Slyce from October:
As for the model, we're making on average $10k/mo for initial snap-to-buy use case. Layer in universal scanner, coupons, analytics, and we can grow that retailer to more than $50k MRR by end of year 1. Since we have more than 200 retailers in our pipeline and in active discussions, we have a clear path to becoming a very big business in the next 2 years.
Also to add:
- SnipSnap App
- Pounce App
- Craves App
With all this facts its hard to understand why the share price is going down so
massively