mdf commerce Ord Shs MECVF

Q2 out

[Sunsurfer12]

Well expect we go back down tomorrow...

Revenue $25m vs $26.5m expected-don't get the comment about negative $1m deferred revneue adj in Q2/22...should this not be compensated by Periscope if the aquired balance sheet doesnt true up?

Earnings another miss..loss of $0.19 compared to $0.12 expected...mix of acquistion expenses and just higher cost structure...

On the surface 20% revenue growth Q/22 compared to Q2/21 but disappointing organic growth once you remove bidnet acquisition revenue from the Q2/22 numbers

Net net not sure how this company moves to profitability given SG&A costs rising as fast or faster than their margin.

[mayorkgh]

Let's not forget that Periscope themselves, who have a good idea what to expect, bought $4 million of MDF shares at $8 in August.

[Sunsurfer12]

Lets see..got MDF to over pay by $50 to $100m and then use $4m of that overpayment to invest in the old company and take the rest off the table..i'd do that deal too every day of the week... As predicted down hard today...sold out at $6.50 over last couple of days so will look to get back in around $5.50 range..at some point they will become too cheap for an acquiror who can better

[mayorkgh]

Hmmm...not quite. $4m was the max they were allowed to invest as a deemed insider. They wanted to put in much more. The acquisition price wasn't an overpayment...it was the going price for a blue chip asset and immediate access to a good cross-section of the huge, fragmented US market.

[Sunsurfer12]

well let's see if they can actually capture that high rate of growth in the US mkt that we paid for...USD$33m total revneue or $11m in growth over 12 months from Periscope. What else is becming abundantly clear is that overall theyre not getting enough revenue per $ of cost deployed...and they finally admitted that...lets see if they can fix it. Took a chance and picked some up again around

[Chosekd]

Hard to say if they overpaid it or not.  MDF paid US$207.3m or ~9.0x 2020 sales (6.3x 2021, or closer to 4.6x including C$15m of synergies). Recent comparaisons would be Mercell’s acquisition of Cloudia at 11.1x 2020 and Fortive’s deal for ServiceChannel at 13x 2020/10x 2021E. I think what market didn't like is MDF was around the same market cap as their acquisition, while MDF got 2.5x