A few comments on FQ1 Revenue, at $1.6M, and gross margin, at 72%, seem to show the kind of growth and metrics we're looking for. The high GM% tells me that there must be a fair amount of SaaS revenue in the numbers, which is good. Maybe Lisa will fill in more details tomorrow at 9am.
Loss was $4.2M, but exactly $4.2M of that loss was stock based compensation (SBC), so, without it, they broke even. That was way better than I'd expected.
Now, just a quick note about issuing options as opposed to doing a fundraise. As we know, SBC is a non-cash expense. If you do a fundraise, since it's a capital transaction, not much in the way of expenses show up on the income statement, although perhaps some fees do. If you go the options route, you wind up with a lot of SBC expense. (Yes, it's a bit of an anomaly.) Since SBC isn't going to be as big a deal going forward, I'm more concerned over the rest of the expenses, which were very, well controlled - just about $1.2M if you remove SBC. That's very well controlled indeed, considering they usually have somewhere around $1.5-2.0M in regular expenses.
To continue, the expense level is a really big deal. I've seen numerous (and I mean NUMEROUS) companies that start growing revenue big time, but it's matched by just as big a growth rate (and sometimes bigger) in expenses. That's not happening here.
Just project out a few quarters. Big revenue, big GM%, controlled expenses. That equals significant value creation.
The only downside is accounts receivable, for which they basically collected nothing. That's understandable regarding Q1's revenue, for which collections always lag by 90+ days. The rest is the longer term stuff, which hopefully will be collected by the end of March, as specified by the company previously, and again tonight.
Overall, this is what I was looking for. Really impressed with rev, GM% and expense control. Can't emphasize enough how important these 3 are.
Now, finally, I can say this: "Kudow to Reliq management!"