Adslot Ltd

Trading update for the June 2018 quarter & the month of July:Adslot Ltd.’s (ASX: ADJ) stock rallied 18.18% to A$0.026 on July 31, 2018 after the company released the trading update for the June 2018 quarter and the month of July. ADJ has successfully deployed Symphony (world's leading trading and workflow solution for digital media agencies) for GroupM in the Indian market on schedule in June 2018. India is considered as the second largest market after China to deploy Symphony. The company has agreed for accelerated deployment of Symphony in five new markets in FY19, and expects higher variable Licence Fees in major markets already deployed. Moreover, in FY 19, Symphony, Adslot’s enterprise SaaS business is expected to grow license fee revenues by 38.7%. Adslot Media experienced first significant trades in US after the launch of Audience First. Media traded through Adslot Media stand alone for month of July (to date) is 79% of entire June quarter. The cost reduction plan is expected to deliver cash savings, and the group reported a cash positive position in June quarter including R&D Tax Rebate. ADJ posted the cash saving of $0.845m in the June 2018 quarter compared to the March 2018 quarter. Meanwhile, ADJ is focusing on US market for trading fee revenues. Additionally, the company’s cash at the end of the June 2018 quarter is of $4.8m. As a result, ADJ stock has risen 4.76% in three months as on July 30, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $0.026.
 

Symphony Licence Fee revenues (Source: Company Reports)
 

Dropsuite Ltd

Strong Performance in the June quarter: Dropsuite Ltd.’s (ASX: DSE) stock skyrocketed 30.43% to A$0.15 on July 31, 2018 after the company for the June quarter has reported strong growth in paid user numbers, increased the cash receipts and maintained new partnerships and managed the cost base. During the fourth quarter, the company had strong cash receipts from sales to $1.06m (normalised cash receipts was $860,000 when accounting for prepayments), which is 21% quarter-on-quarter normalised growth (Q1 2018: $707,000). On year-on-year basis, growth in cash receipts was 62% (30 June 2017: $529,000). The paid users grew 230% to ~600,000 as at 30 July 2018 on year-on-year basis, and 50% increase since the 400,000-user announcement on 05 July 2018. During the quarter, ARPU was lower due to significant contribution of key partner seats growth with favourable sign-on terms. The cash at bank as at 30 June 2018 is of $4.03m with burn rate stabilized. As a result, DSE stock has risen 228.57% in three months as on July 30, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $0.150.

 
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