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NS Damstra Holdings Co., Ltd. (ASX: DTC) Stock prices have fallen today and are now down 10.68% at 46 cents.
Shares in the enterprise protection software business were hit by the opening after the release of Damstra AGM presentation this morning.
AGM’s words acknowledged that “the market seems to have lost short-term confidence in the company” and that Damstra “is focused on sharing disappointment.” [its] Stock performance with other investors. ”
Not only that, the company lowered its forecast for 2010 after facing a series of challenges throughout the year.
Here is an important point.
What is the stock price of Damstra?
This year was a difficult year for Damstra shareholders. Since this time in 2020, Damstra’s share price has fallen from a high of $ 1.71 and is now at a 52-week low.
Alas, management has admitted that Damstra faces challenges in 2020/21 that are contributing to current investor sentiment.
The first major issue related to a contractual dispute with a client acquired through the acquisition of Vault Intelligence Ltd. The second was “The global mining client has internalized hardware and site access requirements, reducing the scope of service.”
Both were “extremely disappointing and adversely affected. [the company’s] Short-term organic growth prospects. ” As a result, the guidance for 2010 has been adjusted.
Damstra has downgraded its revenue guidance for 2010 and is currently aiming for a reduction from $ 35.9 million to $ 38.9 million, from $ 30 million to $ 34 million.
See it again Interest, taxes, depreciation, and income before depreciation (EBITDA) 15% -20% margin after downgrading from 22.5% -25%.
As the company pointed out, these changes reflect the minimal contribution from the Newmont and UK operations for the rest of 2010. The lower bound of the guidance range assumes that new customer acquisition is minimal for the rest of the fiscal year.
Damstra also expects revenues to increase by 10% to 24% in 2010, even with new guidance, and underlying revenue growth of 21% to 37% if Newmont is completely excluded. It states that it will be done.
Despite these headwinds, Damstra FY21 financial resultsSales increased by 40% to $ 27.4 million and now 87% of total revenue is repeated each year (ARR). Damstra’s share price also fell with the announcement of these results in August.
How about First quarter of 2010The unaudited revenue was $ 6.2 million, 87.3% of its ARR. Cash receipts were unaudited at $ 7.7 million and the number of paying users increased to 746,000.
What did the management say?
The company has also appointed a new CFO today. Andrew Ford will take over Damstra’s Chief Financial Officer. He has over 20 years of experience in similar roles.
Regarding this announcement, Damstra Chairman Johannes Richiu said:
Today, we also announced the appointment of Andrew Ford as Chief Financial Officer in February 2022, based in Melbourne. Andrew has spent most of his 20-year career in CFO and senior finance roles. Most recently, he is CFO / Treasury Director of Infrabuild Ltd / GFG Alliance. Prior to that, he was the CFO of Godfreys Group Ltd, which is listed on ASX. Andrew has also held finance positions at Cleanaway Ltd, Skilled Group Ltd, BlueScope Ltd, and the professional services company Deloitte. Andrew graduated with a degree in Commerce from the University of Melbourne.
Damstra’s share price has been well below market expectations for the past 12 months, with a 72% loss during that time. This has spurred a 71% loss since the beginning of the year. Last month’s stock price also fell 51%.
Damstra (ASX: DTC) share price fell 11% due to downgraded guidance
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