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Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Mixed second quarter results. Revenues significantly increased 13.1% to $23.9 million, a sequential quarterly increase from 5.3% in Q1, reflecting its strategic shift toward a subscription based model. Adj. EBITDA fell short of our expectations, however, due to a step up in customer acquisition spend and the purchase of “distressed” vouchers.
Favorable customer acquisition dynamics. Customer acquisition costs went up in Q2 to $38 from $28 in Q1, but still remains positive. Total return is $58, $40 from the annual subscription fee and $18 from transactions. Management anticipates to continue to aggressively spend on customer acquisition in light of the favorable Return on Investment. These moves support a longer term attractive revenue outlook, but have a near term adverse impact on adj. EBITDA.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
