Posted On: 07/21/2015 7:49:41 PM
Post# of 593
Quote:
Earnings Report and Shareholder Call
My key take aways:
They disclosed they had 100 million newsfeed impressions and that they estimate they can monetize 10% of those at $20 CPM nationally and more locally. 100m x 10% x $20 = $200k/month. This is with 400k users. So if 1mm users at the end of year, it would be around $400k/month ($4.8mm annual).
Also said they could monetize search results and charge monthly for analytics, upgraded profiles, ect. which would give it additional revenue streams.
They reduced $600k in liabilities off their books this quarter.
Would have preferred to see them generate revenue before they went public, but social networks is one of those things where you kind of need critical mass before you can start advertising. Facebook and Twitter didn't monetize until they were years old (and Twitter still hasn't turned a profit yet is worth billions). Would imagine they couldn't have monetize when they weren't in the app store, if i were a business I wouldn't advertise in an app that's not available to 50% of people.
The flowhub deal is interesting, still don't quite understand it but I can see how it could be useful.
Committed to being debt free by end of year -- good.
Burned through $1 mm in cash this quarter; said a lot of one-time fees, but still that is a lot of money pre-revenue. Said burn would drop to $250k/month this quarter.
post courtesy of nickperez20
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