TSX:BBTV.DB - Post by User
Post by
Lazaroson Mar 11, 2021 2:03pm
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Post# 32774336
The problem with using Gross Revenue
The problem with using Gross Revenue My main beef with this company is their "revenue" figure. To make it look like they're a huge organization, they quote gross revenue as their top-line revenue figure ($150m Q4).
This is highly inaccurate and a source of investor concern. The "gross revenue" was never theirs to begin with. 92.5% of that revenue belongs to the content creators and should never show up on BBTV's books. They should quote their Gross Margin (what I call net revenue) as their revenue figure, because that is the actual revenue they are entitled to. They would never see the $150m to begin with. Their actual revenue was closer to $4m for Q4.
By quoting $450m in revenue, a normal investor would say "Why the heck are you losing money on that much revenue?". In reality, if they used their actual revenue of ~$40m, their actuall results looks less troubling. The CEO really wants to feel she is running a tech unicorn, but the reality says otherwise. This is a $40m revenue company.
[rant over]