Finally a postive outperforming quarter!Just perusing the numbers. Revenue came in a bit better than expected but WOW look at those gross margins! Hopefully management will comment on how repeatable that GM% is going forward. Also commentary about performance exceeding expectations is very positive (how long has it been since we've last heard that?). Both segments for the company did better than expected and it sounds like the pipeline is exceeding expectations. I'm seeing more chatter about Wheelman on farmer chat forums so word of mouth is starting to take hold but its still going to take a while for it to become meaningful. No more weather excuses, nothing that suggests there are externalities (other than COVID potentially impacting supply chain but that hasn't happened yet) or excuses that could influence 2020.
Cash droped from last quarter but the biggest drain was a bump in accounts recievable (so cash that will be collected next quarter) and a slight uptick in capex. The company actually had positive EBITDA contribution.
Overall it was positive but is it repeatable? That's the question that needs answering. At least we are seeing signs that the removal of outback/satloc and the BPO haven't dramatically impacted the bottom line given the higher margins. The guidance is positive but 2021 is the wild card. Will we see the explosive growth AJX talked about when DV was in charge? Claas is still influencing 2020 business so what happens next year if the contract isn't renewed OR has there been progress on negotiations that lead management to believe a new deal will be struck? (Claas is a HUGE stock overhang as others have suggested). Why was the Kubota stay extended? Will there be share buybacks or acquisitions? Why hasn't management explored a sale of the company? and related to that... What is managements/BOD view of the current share price and if they think it's undervalued is it by a substantial amount? (if yes they should say so. Something dramatic like "we belive the share price is totally dislocated from the inherent value and future prospects for the company"). How long can the company operate without a marketing team? As always lots of questions.