Livetiles has just been appointed AI consultant for Microsoft's entire partner base resulting in fees and therefore potential sales. This should hopefully dilute the cost of customer acquisition from the likes of N3 that are charging $800,000 quarter to generate leads/sales.
If the company continues with the stellar revenue and cash receipt growth with guidance from Microsoft, then I don't know why punters are getting annoyed with another cap raise.
Management have a 44% stake in this company so they have the most to lose from dilution and you need to spend money to make money.
Good forbid a company uses the stock market for what it was meant for. To raise dough.
Stock is cheap for an Aussie tech trading on roughly 20 times annualised revenue ($330m market cap and annualised revenue of $15m) and 275% revenue growth. Yes there is risk that they may continue to hit the market for capital but, if the growth numbers are good, then who gives a sheet.