Freelancer Ltd

FLN Details

·         Rising cash receipts: Freelancer Ltd (ASX:FLN) posted a strong Cash receipts rise of 20% LTM in the first quarter of 2017 to A$51.6 million as compared to the prior corresponding period. Despite weak Escrow.com payments segment, the group could report a decent growth. Accordingly, the operating cash flow was positive to A$2.1 million. Accepted projects also enhanced during the quarter, which is a close financial metrics to revenue and GPV. Importantly, mobile projects showed an outstanding rise of 79% on a yoy basis as compared to the same period of last year, while contests rose 23% over the fourth quarter of 2016. Deposits (unaudited), which is also a major indicator of GPV and revenue in the core Freelancer marketplace segment, delivered a 6% rise in the first quarter of 2017. FLN had cash and equivalents of A$34.7 million as of March 2017.
                              
·       Delivering outstanding growth over the years: Freelancer have been delivering solid growth in their revenues over the years. For FY11, FY12, FY13 and FY14, the group generated a net revenue rise of +37%, 64%, 77% and 39% respectively. The group continued their growth momentum for FY15 and FY16 which rose over 48% and 37% respectively. FLN delivered an averaged compound annual revenue growth rate of 50% over the last six years. During FY16, FLN got 4.6 million new users and 2.6 million new job listings to the platform. They also added eight new currencies and fourteen new websites in 2016. Users rose 31% in FY16 against the prior corresponding period while 79% of projects touch Freelancer mobile products at some point during the project life cycle. FLN stock corrected over 38% in the last six months (as on July 26th, 2017) placing them at an attractive level. We reiterate a “Buy” recommendation on the stock at the current price of $0.67


FLN Daily chart; (Source: Company reports) 

Dorsavi Ltd

DVL Details

·         USFDA clearance for ViMove2 sensor: Dorsavi Ltd (ASX:DVL) got 510(k) Clearance by the U.S. Food and Drug Administration (FDA) for their ViMove2™ sensor, which is expected to launch in the US by the fourth quarter of 2018. This sensor is designed to measure, record, and analyses movement and muscle activity of the lower back. Lower-back pain is a huge mass market opportunity in the United States wherein the condition is expected to cost US$100-$200 billion annually. ViMove2 seems to be a promising product as they have several features like personalized clinician and patient apps for real time access to data, Bluetooth communication between sensors and a mobile app, better user interface and smaller movement and EMG (muscle activity) sensors having a faster start up and longer battery life. By adding the patient app, they would enable patients and therapists to monitor progress while enhance adherence to treatment regimens enabling an enhanced patient outcome through quality movement data. The device also has accelerometer and gyroscope which measures the sagittal (longitudinal) and coronal (vertical) anatomical planes. Moreover, ViMove2 enables patients to track activity levels against goals set by their clinician via a patient app. ViMove is also used in a Pfizer supported study to assess the impact on movement and muscle activity of an over the counter product.
 
The group launched ViMove2 in Australia in May 2017 and intends to launch the UK in the second quarter of FY18. The group is planning a smooth launch into the U.S., which is a major clinical market while the group has a solid levels of customer satisfaction in the U.S. clinical market. ViMove2 is developed as an ongoing annuity revenue product, replacing the model of outright unit sale or short-term lease originally launched for ViMove. The annuity model has been tested in the U.S. clinical market since the last twelve months and proved successful in enhancing sales and a steady revenue stream. Many medical device firms are using ViMove to investigate the functional outcomes of their products impact on patients, apart from Pfizer study.  On the other side, despite a decent rally this month, the stock lost over 26% in the last six months (as on July 26^th, 2017). Based on the foregoing, we give a “Buy” recommendation on the stock at the current price of $0.37
 

DVL Daily chart; (Source: Company reports)

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