Seeking Alpha

More on Velti's Q2: The company expects Q3 revenue of $60M-$64M and 2012 revenue of $285M-$296M,...

More on Velti's Q2: The company expects Q3 revenue of $60M-$64M and 2012 revenue of $285M-$296M, in-line with Street estimates of $61.1M and $290.9M. Adjusted EBITDA is expected to grow to $8.5M-$10.5M in Q4 from Q2's $6.2M. Net cash, a concern following Velti's Q1 report, grew by $5.1M. However, DSOs came in at a steep 266 days, down only slightly Q/Q. VELT +18.5%. Together with Millennial Media's strong Q2 report, the results could bode well for Google's mobile ad business. (PR)
From other sites
Comments (3)
  • Stone Fox Capital
    , contributor
    Comments (7178) | Send Message
     
    that DSO is very normal for a mobile marketing firm.
    14 Aug 2012, 09:41 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1024) | Send Message
     
    The DSO figure means Velti takes almost 9 months to collect payment on average. Analysts have already raised concerns about this.
    14 Aug 2012, 09:54 AM Reply Like
  • PeterScriabin
    , contributor
    Comments (280) | Send Message
     
    Their "business model" is performance-based payments. The software is supplied, and payment mostly depends on the measured "output" of the campaign, which can take 5-9 months (according to their IR).

     

    What we longs have to hope is that they're not exaggerating these potential receivables, but time will sure enough tell.
    14 Aug 2012, 11:51 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs