New Risk • Aug 24
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended June 2022. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported June 2022 fiscal period end). Share price has been highly volatile over the past 3 months (34% average weekly change). Market cap is less than US$10m (€1.41m market cap, or US$1.53m). New Risk • Jul 09
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of German stocks, typically moving 19% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). Market cap is less than US$10m (€1.11m market cap, or US$1.22m). Minor Risk Latest financial reports are more than 6 months old (reported June 2022 fiscal period end). Valuation Update With 7 Day Price Move • Jul 23
Investor sentiment improved over the past week After last week's 18% share price gain to €3.88, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 20x in the IT industry in Germany. Total loss to shareholders of 41% over the past three years. Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment deteriorated over the past week After last week's 25% share price decline to €3.48, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 21x in the IT industry in Germany. Total loss to shareholders of 56% over the past three years. Reported Earnings • Jun 11
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: €30.9m (up 14% from FY 2020). Net income: €2.09m (up €1.79m from FY 2020). Profit margin: 6.8% (up from 1.1% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 7,103%, compared to a 18% growth forecast for the industry in Germany. Reported Earnings • Dec 04
Third quarter 2021 earnings: Revenues in line with analyst expectations Third quarter 2021 results: Revenue: €6.71m (up 19% from 3Q 2020). Net loss: €503.1k (down €508.5k from profit in 3Q 2020). Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Reported Earnings • Aug 21
Second quarter 2021 earnings released The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €7.83m (up 18% from 2Q 2020). Net income: €270.7k (up 136% from 2Q 2020). Profit margin: 3.5% (up from 1.7% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Jan 26
New 90-day high: €9.55 The company is up 46% from its price of €6.55 on 28 October 2020. The German market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is down 8.0% over the same period. Is New 90 Day High Low • Jan 08
New 90-day high: €8.75 The company is up 30% from its price of €6.75 on 09 October 2020. The German market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the IT industry, which is down 17% over the same period. Valuation Update With 7 Day Price Move • Dec 16
Investor sentiment improved over the past week After last week's 23% share price gain to €7.60, the stock is trading at a trailing P/E ratio of 29.3x, up from the previous P/E ratio of 23.9x. This compares to an average P/E of 30x in the IT industry in Germany. Total return to shareholders over the past three years is a loss of 12%. Is New 90 Day High Low • Nov 05
New 90-day low: €6.30 The company is down 4.0% from its price of €6.55 on 06 August 2020. The German market is down 3.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 26% over the same period. Is New 90 Day High Low • Oct 15
New 90-day low: €6.40 The company is down 5.0% from its price of €6.75 on 17 July 2020. The German market is up 2.0% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the IT industry, which is down 11% over the same period.