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Hipcricket Q3 Earnings - What I'm Looking For

|Includes:Hipcricket, Inc. (HIPPQ)

Hipcricket will report financial results for the third quarter ended November 30, 2013 after market close Tuesday of this week.

What I'm looking for:

The quarter ended November 30th includes the Black Friday/early Christmas shopping season. This should lead to significantly higher corresponding marketing revenues Q/Q. Weak holiday marketing spending would obviously be a negative short-term.

I'm looking for roughly $10 million in revenues as my key number. That would be huge for this small company. It would be far-and-away record setting revenues for Hipcricket (which was set last Q at $7.6M). Anything even near $10 million would be a big catalyst for shares IMO. Ladenburg Thalmann has a higher estimate of $10.25 million for the quarter. This would be in line with the company's yearly growth target of at least 30% annual growth and would demonstrate profitability for the business model.

I will also be looking at costs. The company should have lowered costs as part of its ongoing cost reduction program. Operating cash flow breakeven revenue number per quarter should be down to around $10 million. So obviously the revenue key revenue number cited above should make breakeven here possible if costs drop as projected.

Hopefully we can get some insight on the strong/weak holiday marketing spending for the current quarter. It will be a good insight to Q4. Also, any further color on the Google/Mondelez partnership would be nice. I will also be listening for any hint at a need for more cash in the short-term.

But in the end, I think this quarter comes down to revenues and costs. With a marketcap of less than $70 million, if the company can indeed execute on revenues this quarter and provide positive forward guidance, it will immediately create a great disconnect between Hipcricket's growth and a relatively lagging share price.

My previous analysis can be found here:

Stocks: HIPPQ