Storm Brief Comments on Quarterly and Annual
I am squeezed for time, so here are some quick hitting comments on MRNJ's annual report.
1) As expected, getting harder and harder to precit quarterly revenues. Q4 2011 came in 14K less than what I expected. My take is last year 50,000 iPad apps, this year, near 200,000 for holiday season. So, irregardless of Tolle-Oprah, Conversion of many apps to iPad, and initial deployment into Android, there are just more apps to choose from. Lst year, Top 200 was littered with i-Mobilze apps in the days after xmas. This year, yes, more acitvity, but not as robust. There is extra visibility (and thus sales) from showing up in Top 200.
2) Absolutely shocked, in a good way that they were profitable for 2011. Huge. Grew revenue every quarter and finished the year profitable. Cant beat that.
3) Appears they rechecked how to characterize that other 60K and determined it can be marked as revenue. Thus, the full year of 541K beat my estimate thanks to that determination.
4) Based on more clarity on Q4 2011 revs from app sales, I have revised my estimation for Q1 2012. Been a huge upswing in iAD, subscription revs, and upsells to the most popular Glenn Harrold apps, so a storng March may really help this quarter do well.
5) Company hiring, but still spitting out indiv apps as well as ready to surge with way more Free iAD and mega subscription apps. I, IMO, anticipate this upcoming Q2 2012 to be the quarter of mega-apps and iAD. The upselling the free app to a paid app worked well with Relax and Sleep Well, so I suspect they will do this for upcoming big apps.
6) Company is successfully growing company organically and in a disciplined way, particularly fiscally. As a long term investor, I appreciate this. Even futher, the validation/credibility history is geting longer. This will attract more content MRNJ's way. I also appreciate they are serving the self improvement industry. Call it "virtue investing" with this company.
7) Lot of content on the sidelines or in development (per report). As they said, they are "in the middle of the fastest growing sector in the history of mankind". Yeah, a bit grandiose, but look around, everybody is viewing stuff digitally, iPhone/iPads, Android, everywhere...I see it every day.
8) Note ANDI and APCX, Billions of A/S and O/S and our little company comes out and says no additional A/S through Q3 2012 (Sept 2012). Plus, they only have 600 mil authorized. Yes, I like my money here vs. the other two.
That is it for now. Real busy these days, and will post any additional thoughts when possible.
Best to all,
StormKing
