Q4 showed a reduction in cash-burn. I expect Q1 to continue that trend. I think the sidelines is looking at cash-burn, not "good numbers" or "bad numbers". The sidelines are looking for less burn, regardless at what "revenue" number e.g. that occurs at. Wave's limited guidance was that expenses should continue to go down in Q1, and down more in Q2 with Q2 presumably representing their current expenses target, whatever number that ends up being. As Q4 was basically about 10-11m exp, and I imagine they are aiming for 9-10m. If Q1 sees a repeat of Q4 billings then cash burn would not look insanely ugly, just ugly. They won't make it to 9-10 in Q1, and Q1 billings will likely be less than Q4 billings, so the numbers will look pretty rough. I expect they will be compelled to give clearer guidance on current Q2 burn rate during that report and expect them to claim that they will be realizing a full Q of previously referred to cost cutting, which, if coupled to any stability i billings could make a case for something resembling CFBE, which is what the sidelines are looking for.
The above content is my opinion.
