Market's view on Checkit
Published on April 2024
- A lack of new customer contributions was noted, despite a previous investor call mentioning 300,000 new customers.
- The financial analysis revealed a cash burn increase, with a notable spend on bonuses despite the overall financial downturn.
- Disappointment was expressed concerning the company pushing breakeven out by a year and only achieving 16% growth in ARR, with concerns about decelerating growth.
- It was highlighted that the company is poorly valued by the market, and issues were raised regarding the CEO’s recent activity with repriced options, suggesting possible mismanagement.
- Criticism was directed at the CEO for perceived incompetence, particularly in relation to the company’s shift in business model and spending on sales/marketing versus new customer acquisition results.
- Concerns were voiced over the company’s continued negative cash flow and the perceived lack of new customer growth, despite significant investment in sales, marketing, and product development.
- The company’s expansion strategy, focusing on existing customers rather than acquiring new ones, was discussed, with mixed views on its effectiveness.
- Some stock watchers expressed a more patient outlook, willing to wait for potential profitability and improvements by the end of 2025.
- Discontent was noted over the company’s slow customer acquisition rate and over-reliance on price increases to drive growth.
- Opinions were mixed regarding the company’s latest financial results, with some watchers finding them reasonable and in line with expectations, while others considered them disappointing given the company’s performance history.