The drop in revenue and the UOL debacle can't be sugar coated hence the current SP.
The one thing I would reiterate though is that ARPU from these newer partners is likely to be much higher.
Remember they were previously acheiving ARPU of around $1.20 for just website backup. My understanding is that email backup for Office 365 etc. can command a higher ARPU again.
I think we all need to try and be less focused purley on Paid User numbers. Yes, cashflow neutral was previously around the 650k paid user (they are spending about $600k a month).
For example If they can get back to a $1.20 ARPU then 500k users will acheive cashflow neutral. If higher ARPU can be acheived from the more premium back up types (Office 365) then even less users will be needed to get there.
Remember ALSO plan to bundle DSE with their Office 365 sales. I suspect this is the partnership that Charif was referring to has having promising early signs.
I think I've decided to give them another three months to see what these new partners can acheive. If there is traction I'll continue to hold.
DSE Price at posting:
4.5¢ Sentiment: None Disclosure: Held
