Tuesday, April 05, 2022 10:17:56 AM
The $2.8M drop in recurring revenue has me more concerned than anything. Still trying to make sense of it. On the call they explained this as an accounting change to their revenue recognition requirements based on "limited usage" of the assets. Mcmeekin also indicated that this "noise" will go away beginning in Q2, implying that the revenue on those assets would resume being recognized. In regard to whether or not the subscription fees were still being collected on these "paused" assets he remarked, "is the cash going to be collected, the answer is yes or it's already been collected" It was also mentioned in the call that the assets in question were all located in Alberta.
It all makes very little sense to me. If the cash is still being collected, where is it being booked? The deferred rev bal on the B/S did go up by about $1.6M from last Qtr but the recurring rev went down by $2.8M. Where's the rest? Also, WHY are customers not utilizing the service. Limited access to facilities was supposed to INCREASE the value of AssetCare. And even if the customer is not fully utilizing the service, aren't the assets still connected and being monitored "24/7" at mCloud? Isn't that supposedly part of the service agreement? Why isn't that enough to recognize the revenue?
Trying to get answers to these questions from IR.
Recent MCLD News
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- mCloud to Delist from Nasdaq • PR Newswire (US) • 09/26/2023 09:00:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/22/2023 10:09:22 AM
- mCloud Special Committee Approves New Corporate Structure to Maximize Value from Exploration of Strategic Alternatives • PR Newswire (US) • 08/22/2023 03:55:00 AM
- mCloud Special Committee Approves New Corporate Structure to Maximize Value from Exploration of Strategic Alternatives • PR Newswire (Canada) • 08/22/2023 03:55:00 AM
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