I just finished listening to the earnings call. Zoomd's written stuff is so...non-standard that I had to hear them talk live.
- Brief apology for the early earnings release. Complained that the result was a drop in their price when they'd been sure the opposite would happen.
- I agree with Wolf, they totally don't need to talk about adjusted EBITDA anymore. They are significantly cash flow positive and can start just talking about straight up IFRS earnings. EBITDA is what the hopeful losers talk about. Zoomd has earned the right to graduate.
- if their customer marketing is like their investor relations communications, they must have a product so awesome that customers go out of their way to find it, use it and word-of-mouth recommend it. Online advertising is a crowded industry full of smooth talk and disappointing delivery. Zoomd just doesn't have the smooth talk part figured out, yet they appear to be killing it for customers. They claim that they basically flood their actual customers with targetted service, so that may be part of the secret sauce.
- Q&A seemed...staged? There were questions but if there were instructions about how to ask any, I missed them despite poking around thinking I'd figure it out. I had some questions, answers to which would have been very helpful in figuring these guys out.
First quarter report, which they promised in May, should validate whether or not they are still on a growth trajectory. The sequential Q-on-Q drop is sales is a concern, especially since there was no such drop last year.
I really want to like these guys, and there is lots to like. Yet the market doesn't seem to be in a rush to raise their value. If/if the performance keeps up (Q-Q revenue decline is a serious contrary indicator), the company is a fast growing cash generating machine. In that case the stock is a bargain, even if it takes several quarters for the market to realize and appropriately price it. A great example of the gems hidden in plain site on the Toronto Venture Exchange.
I swear to Jesus they asked an AI to write their presser for them: COGS? really? If their IR guy/gal is reading Wolf, please talk about revenues and GP margins, not COGS. thanks.
Isn't sequential Q-on-Q reduction in net sales a red flag? Wasn't in fact Q4 supposed to be seasonally stronger Q than Q3..? From that point of view fully understand yesterday's price action after the release. Nobody trusts managements of Israeli listed companies because they are just shareholder-unfriendly PR-inept (think ALAR, PERI, INMD as recent examples). Hailing from Israel already means = hefty discount to intrinsic value. Hence they only attract momentum traders who treat these business as trading sardines - understandably so. And when you show a sequential decline in sales, that's the only signal such momentum traders would need in terms of growth plateauing to sell off. I'd be surprised if this one retests $0.9 before the sell-off anytime soon unless/until Q1 shows sequential rise in sales again.
I really disagree with your statement, first of all Q3 was strong because of the one-time income, which they still managed to show in profits (if you take out this income). Second, how did you come to the generalization about Israeli companies? I know quite a few that know how to create excellent value for investors (CLBT)
What about customer concentration? Maybe that should be priced in. Interesting to tune in today on cc
It’s a risk factor indeed.
Dose of sanity there my friend, thanks.
Also, the re-written press release did make me laugh 😂
I just finished listening to the earnings call. Zoomd's written stuff is so...non-standard that I had to hear them talk live.
- Brief apology for the early earnings release. Complained that the result was a drop in their price when they'd been sure the opposite would happen.
- I agree with Wolf, they totally don't need to talk about adjusted EBITDA anymore. They are significantly cash flow positive and can start just talking about straight up IFRS earnings. EBITDA is what the hopeful losers talk about. Zoomd has earned the right to graduate.
- if their customer marketing is like their investor relations communications, they must have a product so awesome that customers go out of their way to find it, use it and word-of-mouth recommend it. Online advertising is a crowded industry full of smooth talk and disappointing delivery. Zoomd just doesn't have the smooth talk part figured out, yet they appear to be killing it for customers. They claim that they basically flood their actual customers with targetted service, so that may be part of the secret sauce.
- Q&A seemed...staged? There were questions but if there were instructions about how to ask any, I missed them despite poking around thinking I'd figure it out. I had some questions, answers to which would have been very helpful in figuring these guys out.
First quarter report, which they promised in May, should validate whether or not they are still on a growth trajectory. The sequential Q-on-Q drop is sales is a concern, especially since there was no such drop last year.
I really want to like these guys, and there is lots to like. Yet the market doesn't seem to be in a rush to raise their value. If/if the performance keeps up (Q-Q revenue decline is a serious contrary indicator), the company is a fast growing cash generating machine. In that case the stock is a bargain, even if it takes several quarters for the market to realize and appropriately price it. A great example of the gems hidden in plain site on the Toronto Venture Exchange.
Q&A totally staged, yes. He was reading his pre made answers.
Wolf that typewriter :-). Great job funny a media company lacking in self promoting strange really
I swear to Jesus they asked an AI to write their presser for them: COGS? really? If their IR guy/gal is reading Wolf, please talk about revenues and GP margins, not COGS. thanks.
Isn't sequential Q-on-Q reduction in net sales a red flag? Wasn't in fact Q4 supposed to be seasonally stronger Q than Q3..? From that point of view fully understand yesterday's price action after the release. Nobody trusts managements of Israeli listed companies because they are just shareholder-unfriendly PR-inept (think ALAR, PERI, INMD as recent examples). Hailing from Israel already means = hefty discount to intrinsic value. Hence they only attract momentum traders who treat these business as trading sardines - understandably so. And when you show a sequential decline in sales, that's the only signal such momentum traders would need in terms of growth plateauing to sell off. I'd be surprised if this one retests $0.9 before the sell-off anytime soon unless/until Q1 shows sequential rise in sales again.
I really disagree with your statement, first of all Q3 was strong because of the one-time income, which they still managed to show in profits (if you take out this income). Second, how did you come to the generalization about Israeli companies? I know quite a few that know how to create excellent value for investors (CLBT)