When nete reported Q4 revenue #’s of 15.3M many of us stared in wonder and disbelief at how that had happened. Followers like @Niery cancelled his restaurant prime rib order, stormed out and went home and ate peanut butter and jelly instead….. @AgBanker put his new lexus order on hold and decided his 15 yr old car was good enough for now….and i crawled under the sheets on the bed at the hotel i was staying at and wondered….how AM i going to pay this room service tab? It was a SURPRISE. How could transaction $ from Q1 405M go to NOT EVEN the 733M I and others had calculated…but something more along the lines of probably 1.1 Billion instead? And have that equal 15.3M vs 15.1M in Q4 2015. It just REALLY looked like the growth wasnt there. Or, as someone put it to me….are they giving this sh** away or what !! ? We then searched for an answer and thought we found it in the “try it before you buy it” promos. 90 days…maybe it pushed all the business forward by that amount. Sounded fair and reasonable but that wasnt it. What i am going to do here for you is share what i did last night. I broke out Q4 revenues in EACH category and then compared them to Q4 2015 the same way. I WISH the company had done this but they never break out Q4 separate from the annual results. Probably to try to save on Accounting fees which are already pushing 400M per year. And so…here you go.
No. America 8,112,713 12,688,033 56% y/y growth
Online 1,446,244 1,701,438 17.64% y/y growth
Mobile 5,554,155 933,829 4.7 MILLION Dollars LESS
Totals 15.1M 15.3M
The Transaction $ increase was TOTALLY there……….AND….the revenue increase was as well. In the No. American + online segments. It was all just wiped out with the exception of 200,000 by the changes the company made THEMSELVES to mobile while they are re-working how that business will operate and where going forward.
While revenues WERE 15.3M, in order to fairly present this one would need to either add that 4.7M to 2016……making it 20M or….deduct it from 2015 in order to see the real underlying growth here that their existing businesses is generating.
What is happening with mobile was explained in detail in the conf. call.
The company has explained this in their reports and press releases but i think given the magnitude of this the BEST way people could have seen it would have been if they broke out Q4 vs Q4……like i just did above. It really shows it and shows the key ingredient of the huge growth that is occurring in their existing businesses while this mobile issue is addressed.
do your DD….I’m currently long NETE stock