Q2 2018 Earnings call

mr1mr1 Posts: 359 Bronze ✭✭✭
Goldmoney's Q2 2018 Earnings call is tomorrow (their 2018 fiscal year is from April 2017-March 2018):
https://www.goldmoney.com/corporate/news/goldmoney-inc-announces-date-of-second-quarter-2018-earnings-release-and-conference-call

Anyone have thoughts about what the results might entail? And the effect on the stock price?

Goldmoney reported profit for the first time last quarter (Q1 2018), but I'm questioning whether that will continue into Q2. The Holding was rolled out right at the end of Q1 and that had to have dropped signups to a trickle for much of the quarter, but that might be a mixed bag for profits.

Any thoughts?

Comments

  • PowerlunchmoneyPowerlunchmoney Posts: 255 Bronze ✭✭✭
    edited November 2017
    Two things I've noticed. Roy has been actively trading bitcoin, which lead to a successful last quarter.
    Josh is in China.
    https://twitter.com/JoshCrumb/status/930002418569420800

    Whats that on the table beside the cube @Josh Crumb ?! Looks like a gold key fob!
  • mr1mr1 Posts: 359 Bronze ✭✭✭
  • PowerlunchmoneyPowerlunchmoney Posts: 255 Bronze ✭✭✭
    Pretty sure thats one of those computer generated new stories but may still be accurate.
  • mr1mr1 Posts: 359 Bronze ✭✭✭
    @Powerlunchmoney
    Yeah it definitely looks computer generated, but I was assuming it pulled the analyst estimate from somewhere.

    Here's another one though that says analysts estimate -2 cents EPS:
    https://weeklyhub.com/0-02-eps-expected-for-goldmoney-inc-xau-2/
  • mr1mr1 Posts: 359 Bronze ✭✭✭
    Oh, and I just noticed that the first link actually estimated -2 cents EPS as well. It used the parentheses to indicate a negative value and I didn't notice.
  • PowerlunchmoneyPowerlunchmoney Posts: 255 Bronze ✭✭✭
    Perhaps Roy has sold enough crypto for another quarter of growth.
  • IrishGuyIrishGuy Posts: 136 Bronze ✭✭✭
    I think the stock price will be determined based on user growth/future growth and not past performance in this case.
    The verification process will def have reduced the people signing on.
    The addition of MENE and Bitcoin holding will be a positive for the future of this company.
    They will also talk about their future plans for instanteous trading of PMs and addition of Customer Service to help with verification.
    I would expect a positive result again but that is just a SWAG.
    The key thing for me is In 18 -24 months is this a bigger better company and I would think yes.
    If and when inflation hit or stocks take a tumble, I think tm people will rush to a company like this.

    Just my thoughts and good post.
  • PowerlunchmoneyPowerlunchmoney Posts: 255 Bronze ✭✭✭
    edited November 2017
    Adoption is only part of it. Frequency of use is probably more important. Especially business transactions. I'd like to hear an update on business use. This equifax hack has not been good for business but Bitcoin price most certainly has. I
  • UvasUvas Posts: 661 Silver ✭✭✭✭
    Yes, it looks like the solid gains of crypto is keeping this beast afloat. Thanks Bitcoin!

    Seems counterproductive to be relying on gold's main competitor to stay solvent. 2018 is gonna be a huge year for cryptocurrencies.

    Perhaps if they make the onboarding process even more complicated with even less customer support....heh.
  • IrishGuyIrishGuy Posts: 136 Bronze ✭✭✭
    November 14, 2017 07:00 ET | Source: Goldmoney Inc.
    TORONTO, Nov. 14, 2017 (GLOBE NEWSWIRE) -- Goldmoney Inc. (TSX:XAU) (“Goldmoney”), a precious metal financial service and technology company, today announced financial results for the quarter ended September 30, 2017. All amounts are expressed in Canadian dollars unless otherwise noted.

    Financial Highlights

    Consolidated Revenue of $126.3 million, an increase of $1.1 million (+1%) quarter over quarter (“QoQ”)
    Group Gross Operating Profit of $1.6 million, an increase of $0.37 million (+29%) QoQ
    Client metal weight under custody growth in all four precious metals
    Basic and diluted net loss per share of ($0.01)
    Non-IFRS Adjusted Gain1 of $0.04 million
    Non-IFRS Cash and Tangible Common Equity2 of $61.1 million at September 30, 2017 vs. $61.2 million at June 30, 2017
    Cryptocurrencies position primarily of Bitcoin Cash of $1.3 million at September 30, 2017
    Currency loans totaling $13.7 million of balance sheet capital extended to users against their fully-reserved metal
    Operational Highlights

    Launched consolidated Goldmoney Holding account with combined Goldmoney Wealth and Network features.
    Subsequently integrated 20 new global deposit and redemption options into unified Holding, including WeChat Pay, Alipay, SEPA, UnionPay, and 16 additional payment integrations.
    Completed build-out and subsequent launch of first brick-and-mortar Goldmoney Branch in Toronto.
    Completed investment in Menē 24 karat jewelry subsidiary and subsequent private beta launch.
    Initiated New York Stock Exchange (NYSE) listing process.
    Launched BlockVault Inc. subsidiary and ColdBlocks™: custodial cold storage technology for cryptocurrency assets.
    The Company made several key advancements following the close of the first quarter, including the closing of a $30 million private placement to new institutional investors.

    “The second quarter was a transitional quarter for the group with higher than ordinary professional, service, general and administrative costs as we consolidated the Goldmoney Holding into one unified account with reduced transaction fees. This unification is what ultimately paved the way for our official foray into cryptocurrency assets, which will be launched as a buy-sell feature within days. We also began to invest and capitalize our new BlockVault subsidiary, which will employ our proprietary ColdBlocks™ technology for institutional-grade custody of crypto assets. Lastly, we completed and fully paid for our capital investments in the first brick-and-mortar branch in Toronto, and the Menē 24 karat jewelry venture which has now launched and is generating revenue. In that light, breaking even while maintaining our tangible capital, seems fair," said Goldmoney CEO Roy Sebag. “With that said, I am disappointed in these results as we narrowly missed on achieving our second consecutive net income quarter due to an operational mistake. When we transitioned to the lower fees in June, our dealing desk in Jersey did not properly update certain metal price feeds from incoming counterparties. The result was that we were executing at a disadvantageous price against one specific counterparty, and in some cases losing on platinum, palladium, and silver against certain client order-flows. In what was a bad quarter for all precious metal businesses, Goldmoney actually saw growth in both revenue, client deposits, and even margin, but this error might have cost us up to $0.5-$0.7 million based on initial calculations. We have since corrected this personnel error, and the gross margin has now normalized and should even grow next quarter with the launch of crypto-assets. I believe we have a better brand and infrastructure to aggressively compete with the incumbent cryptocurrency custodians who now oversee tens of billions of such assets under custody. Over the next few quarters we will allocate free cash flow and growth capital towards that objective hiring engineers, compliance, customer service, and marketing staff. This process has in fact already begun with our head-count growing every week since quarter-end.”

    “While the second quarter proved to be another transition quarter for the newly consolidated Goldmoney Holding platform, we continued to show consistent client activity and slight nominal growth despite record low advertising and client acquisition expenditures, as well strong macroeconomic headwinds in the retail precious metal sector. It’s been widely reported that many of our competitors have seen sales volumes and client activity drop as much as 20 to 40 per cent or more year over year in this period of exceptionally low realized price volatility; overall, we see the consistent top line activity – despite lower growth and advertising spend – as a strong signal that our reduced fees and continuous launch of new technology and products has been seeding early client network effects and gains in market share,” said Goldmoney CFO Josh Crumb. “Looking ahead, our third quarter should be the final quarter of our intentionally-reduced marketing spend during this platform transition and ramp up phase, and we plan to market the launch of our new branches, new crypto asset offering, and other broader momentum building initiatives more aggressively into calendar year end. Turning specifically to our recently announced crypto asset launch and BlockVault subsidiary, both initiatives are progressing well and we look forward to at least one month of new crypto asset-related revenue in Q3, and the launch and institutional market entry of BlockVault in Q4.
  • IrishGuyIrishGuy Posts: 136 Bronze ✭✭✭
    edited November 2017
    Most interesting part of the report

    Our dealing desk in Jersey did not properly update certain metal price feeds from incoming counterparties. The result was that we were executing at a disadvantageous price against one specific counterparty, and in some cases losing on platinum, palladium, and silver against certain client order-flows. In what was a bad quarter for all precious metal businesses, Goldmoney actually saw growth in both revenue, client deposits, and even margin, but this error might have cost us up to $0.5-$0.7 million based on initial calculations. We have since corrected this personnel error, and the gross margin has now normalized and should even grow next quarter with the launch of crypto-assets. I believe we have a better brand and infrastructure to aggressively compete with the incumbent cryptocurrency custodians who now oversee tens of billions of such assets under custody.

    Shares down about 10% as I post this so market did not like some news - possibly this!
  • RocketDogRocketDog Posts: 510 Bronze ✭✭✭
    Wow. That is an unfortunate error. I thought the quarterly report sounded good myself. Nothing in there that would make me worried for the future. Especially as CS improves and gold/silver prices go back up again.
  • GMONEY1GMONEY1 Posts: 424 Silver ✭✭✭✭
    The NYSE line was intersting.
  • Lone_StarrLone_Starr Posts: 84 Bronze ✭✭✭
    Either their reporting numbers are off or the real time audit numbers are off because the amount under custody reported in the real time audit shows a decline. (Yes, gold price fluctuation has been included).

    How much of the profit came from crypto trading?

    What is Goldmoney? - I'm curious on what you think it is.

    I believe the lack of focus led to the accounting error. I'm glad that is fixed.

    Goldmoney has been playing well below its potential in the customer service arena. Goldmoney is better than that. I hope to see top notch customer service become what Goldmoney is known for moving forward.
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