Buddy Platform (BUD) financial results have continued to...

Buddy Platform (BUD) financial results have continued to deteriorate with annualised losses before revaluation extending to $16.2m, an increase of 14.9% despite an annualised revenue improvement to $2.6m from a low base of $1.67m.

An analysis of BUD’s results reveals :

• 1. That employee and share based expenses represented almost 70% of the losses
  2. Negative cashflows from operations increased by 61% to an annual rate of $14m
  3. Service margin is rather low at 25% for a software related company

The numbers also shows that BUD expends $7m each half yearly operational costs that are fixed in nature, so in order for BUD to break even it would need to generate circa $28m of revenue each half year or approx. $56m annual revenues based on service margin of 25.3%. And this also assumes that BUD ceases making any share based payments/expenses. Assuming that it continues to grow revenue y-o-y by 55% (which gets tougher as the base gets larger), it would take no earlier than 5 years before it can break even [ this is on BUD’s existing core business excluding effects of LIFX ].

	Column 1	Column 2	Column 3	Column 4
0	BUDDY PLATFORM (BUD)	AUD (mil)
1		HY 2018	HY 2017	% change
2	Annual Revenues	$ 1.294	$ 0.835	55.0%
3	Operating Losses excluding revaluation	-$ 8.100	-$ 7.048	14.9%
4	Annualised Losses	-$ 16.200	-$ 14.096	14.9%
5
6	Employee Benefits Expenses	-$ 4.16	-$ 2.60	60.1%
7	Share Based Expenses	-$ 1.44	-$ 2.79	-48.5%
8	Total Employee+Share Based Expenses	-$ 5.59	-$ 5.38	3.9%
9	% of Loss	69.1%	76.4%
10	Net Cash from Operations	-$ 7.17	-$ 4.46	61.0%
11	Gross Service Margin[/B]	25.3%	21.2%
12	Fixed Annual Cost excl COS & Depreciation&Share Based Expenses[/B]	$ 7.05