RE:Weekend Morning ThoughtsGood analysis but I have a different take if you don't mind. I think a management change should have happened after the November earnings were very disappointing and the stock dropped about 25% that day, from $0.28 to about $0.23. That combined with that god awful newsletter asking for leads was a missed opportunity. Antoine should have been named interim CEO and a search should have been started immediately. Last year was a great opportunity to poach a talented software exectuive who may have lost their job and offered them a 20 million share and bonus based package to take this company off the mat and into the air. Stock hits $0.50 here is a $2 million bonus. Stock hits $1.00 here is a $5 million bonus and so on. As a former shareholder I support and vote for any pay package tied to share price appreciation.
Second, they tout M&A as part of their growth strategy yet they have only done 2 deals in 3 years I believe, correct me if I'm wrong. That is not a pace of a burgeoning tech company who is being aggressive and growing top line revenue. They have no cash to buy anyone right now. $8 million in the bank combined with $21 million in total liabilities is not the balance sheet of a company looking to buy an accretitive company who can help top line growth. Like I said Lightspeed and CloudMD have done 6-8 deals each in the past 6-8 months. Those are M&A focused companies and their top line revenue is growing like crazy, CloudMD has gone from around $8 million in total revenue last year to $140 million at the end of this year after all their deals are accounted for. Lightspeed very similar.
Third. they have touted this "journey to $100 miilion in revenue, sadly this not achievable in my opinion based on this pace. A company with a bloated board structure and management team that are on salary and not bonuses and stock based incentives is a major problem. I found it to be very troubling that rank and file workers are having hours cut but board members keep their salary and their positions.This is a 4 person board, period. 9 board members for a $16.5 million a year company is a joke. Tilray has a 9 person board and makes close to $1 billion a year. Steve Jobs made his fortune on stock, not salary. So does Elon Musk, Jeff Bezos, Mark Zuckerberg.......... see a pattern here?
Forth and final the product. I still have a hard time understanding what it is they are selling and how and why companies need this. My opinion is this a want not a need service. They call this service "Digital Experience Monitoring" from a pure marketing perspective it should be renamed "Digitial Productivity Monitoring" It should be monitoring the tasks performed with Microsoft to alert executives who is spending the most time on Microsoft and what are they doing? Are they using more Word or Excel, Powerpoint, Teams? What is the average time someone uses each? Sell that data to Microsoft so they can continue to build those platforms and make productivity, not experience, useful.
Just my thoughts