BBTV Holdings 7 Unsecured Convertible Debentures T.BBTV

RE:RE:RE:The problem with using Gross Revenue

[Aarman4]

I don't believe the accountants have a choice in the matter..... Their product generates x revenue..... If they shut down, then it doesn't exist...... The amount they pay out to content providers is cost of revenue.......... In the end, every dollar and cent that flows through the company is tracked, and that is the way we want it.... Cheers

Lazaros wrote:

marketguru wrote: Im not sure that is fair Lazaros, its not a $40M revenue company, its a $40M gross profit company (big difference). They are trading at less than 10X gross profit where as their comps are trading at >50X gross profit. Also, their latest financials had the metric BBTV Take to provide more transparency about their revenue figures to make it clear that their take of the gross revenues were lower. This doesnt sound like a company trying to take credit for the entire top-line. The only way to look at this company is based on gross profit. Also, with the number of analyst reports, there is heavy scrutiny on the company.

Fair enough. I can respect your view on revenue, although I disagree. As for the metrics, they have been, and are, trending in the right direction. Plus is growing - slowly, but growing. They've signed more influencers. Have a plan to grow their gross margin/net revenue to 25% of gross revenue by 2025. They estimate their take will be $300m.  Aggressive, but I wouldn't invest in a company that had uninspired goals. I am obviously bullish on the company, otherwise I wouldn't own a share. I am just flagging some concerns I have, along with what others have mentioned like working capital and the need to raise money (or generate more cash).

As for share price, I recall they had a share 'stability' or some such agreement with the underwriters to engage in shorting and even naked shorting to influence the price. This was in the prospectus and seemed to imply this was to support the price post-IPO. The wording was quite interesting, if I have time I'll post it. 

That being said, this is a place to exchange information. I don't have strong feelings about this company either way. I just want to avoid any capital loss.