Updater loss blows out after it announces move to ditch the ASX
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Updater has posted a half-year loss that has blown out by 158 per cent, a week after the company said it was looking to delist.
The loss grew from $US5.7 million to $US14.7 million.
Updater (ASX:UPD) said the half-year loss was due largely to personnel expenses.
But the accounts show a blow-out in general and administrative expenses, rising from $US1.9 million in last year’s half year results to $US9.2 million.
The ‘relo-tech’ (relocation tech) company offers an online service that helps Americans moving house update all their details and utilities in one place.
Updater makes money by allowing third-party services such as insurance providers to use its app to offer their services.
Updater said last week it would delist from the ASX in order to “pursue its next phase of growth in the United States”, after investors there said they were interested in investing, but only if they were a private company.
Charging business is paying off
The company is holding $US39.1 million in cash and made $US3.8 million in revenue, compared to $US505,017 last year.
But Updater has also started measuring two other revenue figures which it doesn’t include in the audited figure — deferred and new contractual revenue.
It says these add up to a $US7.3 million “total revenue” figure.
Management reaffirmed guidance that indicates full-year “total revenue” will be in the region of $US19 million to $US23 million.
Full-year audited revenue for 2017 was $US2.2 million.
The company did not include guidance for audited revenue in its latest statements, and did not include the “total” metric in its 2017 full year accounts.
Updater charges businesses to access its platform plus higher fees to advertise to Updater’s users.
Updater plans to have more paid programs in five verticals by the end of the year: Internet and pay TV, full service moving, insurance, DIY moving and local services
“Management is pleased to report that tens of thousands of its users completed transactions via the Updater experience in 1H 2018,” the company said.
”Products and services of business partners worth approximately $US64m have been sold via Updater in 2018 [so far].”
Updater shares were flat after the result at $1.21.
Stockhead is seeking comment from Updater.