Canada markets closed

mCloud Technologies Corp. (MCLD.V)

TSXV - TSXV Real Time Price. Currency in CAD
Add to watchlist
2.4600-0.0200 (-0.81%)
At close: 3:59PM EDT
Sign in to post a message.
  • J
    Jake
    Not sure if others have noticed, but mCloud's org chart had been through some significant changes lately.

    There was an announcement recently for their new EVP and COO (Arnel Santos)..... but I am curious why 4 other company presidents (Dave Weinerth, President Advanced Visualized Solutions; Yan Zhao, president of greater China; Nitin Kapoor, President UK and EMEA and Patrick O'Neill, President North America) and a founder/board member Michael Sicuro seem to have all left mCloud?

    Does anyone know if they have left mCloud and if so, did they resign or were they let go. I know there was also a big announcement not long ago when Patrick O'Neill joined and that he was going to help mCloud expand into the North American market....not sure what has happened to have so many senior executives not be on the revised org chart. If they have all left the company? or was there an issue or concern with the top leadership, Russ McMeekin that they simply needed to move on?
  • J
    Joseph
    We’re for sure in a downswing… Cash running low and initializations numbers have been dropping which hamper future growth. If the backlog really and truly is there I’m not concerned… Management have a lot to prove once restrictions lift as were all sick and tired of hearing the same story over and over each call.

    Tough pill to swallow today but I’m remaining patient as the business model is structured so well to support future ongoing operations (Zero attrition and growing NDR) and growth (With 100k+ connected assets) and the story behind the software and how it helps business’ is too compelling to back out now (Read Digital Transformation by Thomas Siebel).

    Comparables like $AZPN and $AI are much more established. Remain patient.

    I’ve been holding for over a year now.
  • J
    Jake
    Financials are getting worse in comparison from Q1 to Q2 of this fiscal year. Revenue is down from $8.3M to $7.2M....Gross Profit is down from $5.1M to $4.6M but expenses were up from $11.2M to $13.2M!!!!!

    Mcloud will lucky to break the $30M revenue number this year, never mind the $70M target I think they predicted earlier. Real disappointing that their bottom line got significantly worse from the previous quarter with an increasing in NET OPERATING LOSS from a negative $6.1 in Q1 to an increasing negative loss of $8.6M in Q2. They are actually loosing money faster than previous quarter, which I had thought was unlikely, but they did it anyhow.

    I guess that is why they tried to talked up the 6 month comparison vs talking about quarterly comparisons in this summary report. Now we can see where all their cash went. They are still burning through over $11M in cash per quarter with no real end sight to stop the bleeding.

    One would have thought that as covid restrictions were reduced and clients operations were opening up again, that this quarter would have seen a significant increase in connected assets, but the growth of connected assets only increased by 1019 for the QUARTER!!! When compared to the previous quarter, the total new assets was 2027...which represents a reduction in the quarter over quarter growth of assets a whopping negative 50% roughly.

    Achieving 70,000 connected assets by the end 2021 seems like dream number now, which I think was their published target in the first quarter. Also, I cannot see how achieving 70,000 connected assets will make them profitable as the CEO has been claiming over the previous quarterly reports. There is no way that by adding another 8,000 connected assets will mClous have a net operating profit.
  • N
    NorthernTrader
    Nasdaq listing! YES!
    Decent growth too, in a difficult time. Next Q should be very good.
  • F
    Francois
    At this price, earnings must be quite spectacular. Otherwise, simply a lot of expectations and hype
  • J
    Joseph
    "Q2 2021 vs Q2 2020" and "Q3 2021 vs Q3 2020" will each see >100% increase in revenue, >300% AssetCare MRR growth, a big uptick in CARG, and substantially more connected assets as COVID-19 restrictions in Alberta and globally are progressively lifted. Facts.

    With Net Dollar Retention strong and every Management team of every company globally aggressively and actively implementing ESG and Digital Transformation initiatives, this little micro-cap from timbuktu is set to hit the ground running with an up-list. Its been exciting to watch over the past year but I strongly believe we've seen nothing yet.
  • N
    NorthernTrader
    Wow. The new SVP and COO has over 30 years at NOVA and over 25 years at Shell. If he started at NOVA at age 21, that would make him at least 76 years old!
  • J
    Joseph
    More dilution in exchange for less debt on the balance sheet. Thoughts?
  • N
    NorthernTrader
    The EU (450 million population) just committed to converting every building to a greener version with their "Fit for 55" legislation.
    mCloud is PERFECTLY suited to expand across Europe.
  • J
    Jake
    mCloud can't generate enough cash to pay off their upcoming debt obligations nor the interest on the debt obligations, so more share dilution and kicking the bankruptcy can down the road a bit further.

    I wonder if the staff was paid this week?
  • J
    Joseph
    I can’t wait till Q2 financials are released so Jake can see all the cash left over to pay the employees 🤣
  • A
    Alan
    A COO is good for mCloud!
  • J
    Jake
    Direct from their latest published financials:

    "During the year ended December 31, 2020, the Company generated a net loss of $34,860,963 and negative cash flows from operating activities of $25,350,826. As at December 31, 2020, the Company has an accumulated deficit of $85,686,366 and a working capital deficiency of $13,052,702. As a result, the Company may not have sufficient capital to fund its current planned operations during the twelve-month period subsequent to December 31, 2020. The continuation of the Company as a going concern is dependent on its ability to achieve positive cash flow from operations, to obtain the necessary equity or debt financing to continue with expansion in the asset care market, and to ultimately attain and maintain profitable operations. These conditions indicate a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern."

    There are more and more signs that mCloud will not be in operation in the near future. Even though their revenue has increase, (but much less than predicted) , their net income and cash flow have actually gotten much worse which will be a huge burden on the company to pay their ongoing operating costs and ever so in increasing financial borrowing costs.
  • J
    Joseph
    From the press research this morning:

    “The US Department of Energy recently released a national roadmap to have every commercial building in the United States become grid-interactive through standards including OpenADR with the intent of tripling building energy efficiency using demand reduction by 2030.

    Conventional solutions for connecting buildings to the grid required extensive manual labour, meaning very few buildings have found such implementations attractive, hampering widespread adoption. mCloud uniquely addresses this problem through the use of AssetCare's AI and edge connectivity to the cloud, which dramatically simplifies and automates the deployment and ongoing response to grid signals for load management.“

    This is the kind of stuff you love to hear as an investor thinking of the macro picture… As I’ve mentioned before this companies rise to the NASDAQ will be a slow burn and those who are patient will be rewarded.
  • J
    Joseph
    Four days ago (May 27th, 2021) Jack Vander Aarde from Maxim Group reiterated a "BUY" rating with a price target of $5 (242% upside). His recommendations have generated a 110% return while being a tracked analyst on TD with a success rate of 74%, ranking 13th out of 7,533 tracked analysts... No fluff here just facts.

    I KNOW price targets are forward-looking and SHOULD NOT BE RELIED ON SOLEY (As analysts may be unknowledgeable, incentivized by recieving future underwriting fees, flat-out wrong, etc), but, this is some encouraging news for the people who've been holding and are long on this 10 bagger.
  • J
    Jake
    Back in May of 2020, in their annual financial press release, Russ McMeekin projected revenues for 2020 to be between $70-$72 million. He was only out by about a factor of 3!!!!

    This was near the end of May of 2020 (almost half way through the fiscal year) and he did not have the knowledge or intelligence to know that mCloud's revenues would not even be close to the $70million range?

    I think this says a lot about the leadership at mCloud and how well they actually know their business or the industry they are in.
  • J
    Jake
    Wonder what mCloud will do after their latest and final debt financing tranche of $1.7 million runs out, which at the rate of their cash burn should be in less than month?

    How will they pay their staff and other operating expenses without additional external debt financing?
  • W
    WallStPirate
    I hope you all have been adding sub 30. Recent interview with Chantal was good. They said early July for Autopro. Also Chantal key it slip another m&a. So more growth. I do like the debt mix with > 8 ebitda. News from Telus, China and additional asset care customers will be great. They said over 40k this year and they like to beat. But using 40k we will have approx 12 to 14 million in recurring revenue. That is the value of co alone now we get the rest of the co
  • P
    Pushkin
    Looks good to me. If we consider the fact that the initial buildout and R/D is past now we just need to generate new business and update what we already have. Then, in 3-5 years, they can come out with their 2nd generation of this tech and so forth. A tried and true method of generating and keeping recurring revenue streams. I'm excited!
  • W
    WallStPirate
    Autopro deal is complete. Yahoo will not let me post link. Another article had proactive giving them a 1.10 cad value or 250% upside.

    We need more info on Telus and China asset care as the recurring rev will cause s nice revaluation. Get to 200k units and it’s 30 million rr then we move towards US $1.50 to $2.

    All the right places to be saas ,cloud, Ai ,energy conservation and management and renewables and ar