Big Un Limited Posts Revenue Growth; Cash Receipts of $1.8M during Quarter
The company stated in an announcement to the ASX that the key drivers behind the results were “a combination of strong customer acquisition and an increase in revenue per customer.”
Australian video media producer Big Un Limited (ASX:BIG) announced $1.8 million in cash receipts for the quarter ended June 2016, a 53% increase on the prior quarter. Big Un Limited is the parent company of Big Review TV.
The company stated in an announcement to the ASX that the key drivers behind the results were “a combination of strong customer acquisition and an increase in revenue per customer.” Big claims that the average revenue per enterprise and SME customers now exceeds $1200.
On 15 June the company provided a guidance of $1.5million for the quarter but the actual result exceeded guidance by 20%.
Brandon Evertz, Executive Director of Big Un Limited was pleased with the quarter and emphasises on the rising demand for Big’s product: “This has been another strong quarter of growth for the company and demonstrates our ability to sustain our momentum. This can be attributed to the high demand from SMEs for high quality video marketing solutions.”
Big Remains Positive on Medium-Term Outlook
The company has provided an upbeat outlook for the upcoming quarter as management is confident that momentum can be sustained. Big believes that ‘major product enhancements underway’ will help convert the ‘strong customer pipeline.
Big’s vision is to ‘revolutionise the way businesses do video’ as Big wants to become the ‘Xero of SME marketing’. The company uses Xero as an example as Xero has changed the way SME’s do their accounts.
Investment View: Market Sentiment Negative Towards Sector, but Big’s Revenue Growth is Attractive
Big Un Limited offers speculative exposure to demand for video based mobile content. Its established revenue profile, large sales pipeline, and long term strategy are attractive qualities. Whilst funding, audience momentum, and competition are risks, the Company’s capacity to convert its existing sales pipeline into paid memberships should become salient over coming months.
Author: Simon Herrmann
Jul 12, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.