The loss was seven cents per share worse than the “paid” analysts (at Lake Street Capital, JMP Securities and Craig Hallum) had predicted. But Bob was… spot on, as ever!
More in a moment. Bob has these jokers — dead to rights! And it will be fascinating to watch how quickly Mr. Singer, the activist behind Viex — a new 5 per cent stock-holder — surfaces, to advocate for more aggressive changes in the business model, and executive management. And perhaps… the board, as well.
U G L Y.
As Bob points out, the company had to really push the large accounts for collections, in order to get to the level of cash flow burn they are now showing. Truly ugly.
Several large deals are (once again) taking longer in getting to the start line, and/or fully deployed, according to CFO and board member Mullen. Same old song — same old. Same old.
Only $10.558 million in total revenue.
Another humpty-dumpty quarter. Look for the stock to fall again, tomorrow.
CEO Conway is openly saying that the company needs to rebuild its pipeline — it is relying on too few deals, and so a delay in more than one causes a miss at the revenue line, on the quarter. Mr. Conway is finally admitting what has been clear since Q2 2016 — the larger customers are taking “slow walks“, or even a “wait and see” approach — to deploying into larger seat footprints.
We will listen to the call in a few moments.
That ought to be… priceless.
I am on the call now — revenues falling (per the SEC filed Q2 2017 slide deck):
The Lake Street Capital analyst just called “Q2 2017 a disappointing replay of Q1 2017….” That sums it up.
George Sutton of Craig-Hallum is asking for granularity on the way they think they can get to a projection of EBITDA positive (as adjusted) in Q4 2017. That’s a projection they are remaking, expecting $300,000 of cost savings per quarter in Q3 and Q4 2017 — compared to Q1 and Q2.
It seems, says Mr. Sutton, the “price rebate guarantee” is not driving all the leverage the company had hoped for. Now Mr. Conway is explaining how hard it is to sell to large companies’ procurement functions.
This is just… sad. There is no other word for it.
JMP Securities is asking what was the typical sales cycle a year ago, as compared to today? Great question! CEO Conway says they are so different, that one cannot generalize. What an ugly dodge.
I’ll close this by posting a link to the same Q2 call — but from five years ago: 2012. Except for the CFO, it is a… dead ringer. These guys have been telling this same “Cubs story” (i.e., wait until next year) for 17 years. Un-freaking-believable. But actually, that is now an insult to… the Cubs. They actually… won. It was in the papers — at least I think it was.