EPSMiss -20.1%
Actuals vs. estimates
| Metric | Actual | Consensus | Surprise |
|---|---|---|---|
| Revenue | Unavailable | Unavailable | — |
| EPS(GAAP basic and diluted, total) | $(1.79) | $(1.49) | ▼ Miss -20.1% |
Revenue — possible unit mismatch: actual is 0.0935x the estimate
EPS — API Ninjas actual does not reconcile with selected Quartr EPS basis
Verdict
- The net loss per share of $(1.79) missed the API Ninjas estimate of $(1.49) by 20.1%.
- The company now files as Smartbird, Inc. and reports the legacy footwear business as discontinued operations, so the quarter is a different company from the one consensus was built on.
- Continuing operations produced $2,758 thousand of net revenue against $2,758 thousand of cost of net revenue -- zero gross profit -- versus no revenue at all a year ago.
- A $21.552m gain on disposal of discontinued operations held the reported net loss to $16.369m, barely worse than the $15.501m a year ago.
Key metrics
| Metric | Reported | Prior year | Change |
|---|---|---|---|
| Net revenue (continuing operations) | $2.758m | $0 | n/m |
| Selling, general and administrative expenses | $10.695m | $5.060m | +111% |
| Net loss from continuing operations | -$12.778m | -$5.141m | +149% |
| Gain from disposal of discontinued operations | $21.552m | $0 | n/m |
| Net loss | -$16.369m | -$15.501m | +5.6% |
| Weighted-average shares, basic and diluted | 9,164,890 | 8,090,259 | +13.3% |
Guidance changes
No financial guidance change disclosed.
Quality of earnings
- Net revenue of $2,758 thousand exactly equals cost of net revenue, so the first revenue of the new entity carries no gross profit.
- The $16.369m net loss combines a $12.778m continuing-operations loss with a $3.591m discontinued loss that is itself a $25.143m operating loss offset by the $21.552m disposal gain.
- Selling, general and administrative expenses of $10.695m more than doubled from $5.060m while continuing-operations revenue base remains under $3m.
Gotchas & watch items
- Interest expense of $1.458m appeared against none a year ago, plus a $0.229m loss on the fair value of convertible debt.
- Weighted-average shares rose 13.3% to 9,164,890, so the per-share loss understates the growth in the absolute loss from continuing operations.
- The release provides no forward guidance, leaving the run-rate of the continuing business undefined.
- The pipeline dropped the revenue comparison as a possible unit mismatch, with the reported figure at 0.09x the estimate.