Minds + Machines Share Discussion Threads

[jackson83] 01/2/2018 15:34

Namescon Vegas USA took place and yes MMX attended at our expense !! Just a Jonny jolly boys outing & I expect the share price to drift down to 8p again 😂..then be walked back up in April ( MMX share unloved lol ).

[sarkasm] 31/1/2018 10:27

PROACTIVE

Minds + Machines rallies strongly after it confirms move into operating profit
15:05 25 Jan 2018
Minds + Machines delivered on its promise to achieve its first year of profitability as an operating business.
World wide web top level domains
The number of domains under its management stood at 1.32mln, up two-thirds from 0.8mln at the end of 2016

Internet domains specialist Minds + Machines Group Ltd (LON:MMX) saw its shares jump higher today after it said it anticipates its underlying earnings to be slightly ahead of expectations for 2017 after a strong second half.

Billings were in line with expectations in 2017 while profits were boosted by the company losing out on a couple of auctions for the rights to top-level domains (TLD); under the auctioning system, the winning bid for a TLD is shared out equally among the losing bidders.
READ: Minds + Machines investors await outcome of strategic review but Chinese progress success boosts confidence

By the end of the year, the number of domains under its management stood at 1.32mln, up two-thirds from 0.8mln at the end of 2016.

Billings in the second half of the year clocked in at around US$10mln, versus US$5.6mln in the first half, which meant full-year billings were roughly US$15.6mln; this was enough for Minds + Machines (MMX) to achieve its first year of profitability as an operating business.

The group said the mix of the billings also continued to improve, with the all-important renewal revenue rising to US$5.6mln from US$3.8mln the year before, while recurring income, for the first time, exceeded fixed operating costs, which management has been working hard to reduce.

Fixed operating costs in 2017 were slice to less than US$5.5mln from US$6.5mln in 2016.

Net cash at the end of the year had risen to US$15.9mln from US$15.3mln a year earlier, and the company noted that this was despite settling some US$3.1mln of balance sheet liabilities during the year associated with contracts that were restructured in 2016.
READ: Minds + Machines in discussions with bidders from Asia, North America and Europe

The group launched a strategic review in May and acknowledged that this is taking a frustratingly long time but said it hopes to have concluded the process by the time of the announcement of the full-year results, which are scheduled to be released in April.

"To have transformed the company from a loss-making business to a profitable one on an ongoing basis within 24 months is an achievement the whole team should be proud of,” said Toby Hall, the chief executive officer of MMX.

“2018 has started positively and I look forward to updating shareholders in April with our strategy for building on this profitable platform and delivering value to shareholders," he added.

House broker finnCap said it would leave its full-year 2018 forecasts unchanged for now.

It is predicting "9% sales growth, but more significantly, a 29% improvement in EBITDA, with margins forecast to grow (from 25% to 29%) due to a growing proportion of (high margin) renewal revenue".

"We continue to view MMX as materially undervalued and see today's news as one of two share price catalysts – the second relates to the company's strategic review, which will conclude in April," it said.

In late afternoon trading, Mids + Machines shares up 19.3% to 9.6p.

--- updates share price ---

[jackson83] 29/1/2018 17:08

Chimers -

end of April is 12 more weeks away, and in that time without any further newsflow this share price will be back to 6/7p or below! I think a sale is not now going to happen!

[jamesto2] 29/1/2018 16:51

could go viral in time Sir🙏 10 year plan maybe

[jamesto2] 29/1/2018 16:49

We need to give it another year or so before MMX can be sold

[jamesto2] 29/1/2018 16:46

So Chimers where do you see The share price heading back down to 8.5p soon as all the good news is out & priced in 🙈

[hjb1] 29/1/2018 16:05

Jackson has copied this from lse board.....again! braindead or what pal, not got a mind of your own you moron! at least acknowledge it's someone else's post.


The Review.
I think it would be well for all those connected to MMX to consider in a sober and objective way the value in continuing the review process.To my mind it would be the exception ,if after eleven months of negotiation we didn�t end up with a watered down version of what was first envisaged at the beginning of the process. Management have excelled at increasing tld sales and have lead this company into its maiden profit however,One must ask what they would have been achieved without a ball and chain around their legs.Would we be seeing Chinese character domains flying of the shelf rather than halted? Would we have another tld being prepared for launch? Would we have had RNS details on failed auction revenue? Etc.Is our operational progress being slowed because of the review? I ask the question. As for MMX as an investment ,the focus is on the outcome of the review and not on the business and as a result we see a single figure share price. I take the view that this review is damaging on all fronts.Toby Hall describes the process as �frustrating� Why ? They came to us .Let� interested parties� meet our terms or close to them or be invited to return in a year or so when the business is more mature ,and then they can pay a higher price.Lets have the courage to say ,enough is enough and move on as a stand alone ,profitable business with a bright future. I call on management to end the review process unless it can be concluded in a week or so.

[jackson83] 29/1/2018 14:44

The Review.
I think it would be well for all those connected to MMX to consider in a sober and objective way the value in continuing the review process.To my mind it would be the exception ,if after eleven months of negotiation we didn�t end up with a watered down version of what was first envisaged at the beginning of the process. Management have excelled at increasing tld sales and have lead this company into its maiden profit however,One must ask what they would have been achieved without a ball and chain around their legs.Would we be seeing Chinese character domains flying of the shelf rather than halted? Would we have another tld being prepared for launch? Would we have had RNS details on failed auction revenue? Etc.Is our operational progress being slowed because of the review? I ask the question. As for MMX as an investment ,the focus is on the outcome of the review and not on the business and as a result we see a single figure share price. I take the view that this review is damaging on all fronts.Toby Hall describes the process as �frustrating� Why ? They came to us .Let� interested parties� meet our terms or close to them or be invited to return in a year or so when the business is more mature ,and then they can pay a higher price.Lets have the courage to say ,enough is enough and move on as a stand alone ,profitable business with a bright future. I call on management to end the review process unless it can be concluded in a week or so.

[battlebus2] 26/1/2018 08:29

15p hopefully 🤞

[cheshire man] 26/1/2018 08:23

Took a few yesterday on that TS,,,,nice looking chart so lets see where it takes me :-)

[costax1654x] 25/1/2018 21:03

I think after FFI with Massive directors buys this one is one to watch as well!

[jackson83] 25/1/2018 21:00

Congratulations to the MMX team. , Toby Hall and his team are bringing more entrepreneurial energy to the new TLD economy than the rest of the new TLD registry industry combined. The debate is not about COM or Not-COM. The debate is about creating a reason for the world to care about domains at all and not follow the path of the telex and fax as addressing schemas. The future of the industry is about vertical and geographies mapped to useful platforms. The registrar channel by itself will not carry the water, at least not initially. MMX grasped that and courageously went out to find the business cheap 1st year domain registration deals or making tactical use of Market Development Funds to goose numbers. The end-game for new TLDs is about adoption in the wild, not domainer speculation or defensive brand protection shakedowns. 2018 is shaping up to be a decisive year for the new TLDs. With ~140,000 development-grade registrations in new TLDs in our portfolio, we at DigitalTown have placed our bet. See you at NamesCon." Praise at the bottom half of the internet on a domain-focussed website is high praise indeed. Bravo.

[maywillow] 25/1/2018 20:52

Minds + Machines rallies strongly after it confirms move into operating profit
15:05 25 Jan 2018
Minds + Machines delivered on its promise to achieve its first year of profitability as an operating business.
World wide web top level domains
The number of domains under its management stood at 1.32mln, up two-thirds from 0.8mln at the end of 2016

Internet domains specialist Minds + Machines Group Ltd (LON:MMX) saw its shares jump higher today after it said it anticipates its underlying earnings to be slightly ahead of expectations for 2017 after a strong second half.

Billings were in line with expectations in 2017 while profits were boosted by the company losing out on a couple of auctions for the rights to top-level domains (TLD); under the auctioning system, the winning bid for a TLD is shared out equally among the losing bidders.
READ: Minds + Machines investors await outcome of strategic review but Chinese progress success boosts confidence

By the end of the year, the number of domains under its management stood at 1.32mln, up two-thirds from 0.8mln at the end of 2016.

Billings in the second half of the year clocked in at around US$10mln, versus US$5.6mln in the first half, which meant full-year billings were roughly US$15.6mln; this was enough for Minds + Machines (MMX) to achieve its first year of profitability as an operating business.

The group said the mix of the billings also continued to improve, with the all-important renewal revenue rising to US$5.6mln from US$3.8mln the year before, while recurring income, for the first time, exceeded fixed operating costs, which management has been working hard to reduce.

Fixed operating costs in 2017 were slice to less than US$5.5mln from US$6.5mln in 2016.

Net cash at the end of the year had risen to US$15.9mln from US$15.3mln a year earlier, and the company noted that this was despite settling some US$3.1mln of balance sheet liabilities during the year associated with contracts that were restructured in 2016.
READ: Minds + Machines in discussions with bidders from Asia, North America and Europe

The group launched a strategic review in May and acknowledged that this is taking a frustratingly long time but said it hopes to have concluded the process by the time of the announcement of the full-year results, which are scheduled to be released in April.

"To have transformed the company from a loss-making business to a profitable one on an ongoing basis within 24 months is an achievement the whole team should be proud of,” said Toby Hall, the chief executive officer of MMX.

“2018 has started positively and I look forward to updating shareholders in April with our strategy for building on this profitable platform and delivering value to shareholders," he added.

House broker finnCap said it would leave its full-year 2018 forecasts unchanged for now.

It is predicting "9% sales growth, but more significantly, a 29% improvement in EBITDA, with margins forecast to grow (from 25% to 29%) due to a growing proportion of (high margin) renewal revenue".

"We continue to view MMX as materially undervalued and see today's news as one of two share price catalysts – the second relates to the company's strategic review, which will conclude in April," it said.

In late afternoon trading, Mids + Machines shares up 19.3% to 9.6p.

--- updates share price ---

[maywillow] 25/1/2018 20:49

hjb1
25 Jan '18 - 19:21 - 5496

thanks for the links

[grupo guitarlumber] 25/1/2018 20:20

New TLD company MMX swings to profit for 2017

by Andrew Allemann — January 25, 2018 Uncategorized 3 Comments

Pureplay new top level domain name company hits profitability.

Minds + Machines (MMX) announced today that it was profitable in 2017, the first year that it has been profitable as an operating company.

H2 2017 billings totaled about $10 million, up from $5.6 million in the first half of 2017.

Renewal revenue in 2017 was $5.6 million. With fixed operating costs reduced to below $5.5 million, that means the company’s recurring revenue exceeded fixed operating costs.

The release says that the company is continuing its strategic review:

The strategic review continues to progress and the benefits of consolidation in the industry remain. Whilst the longevity of the discussions has been at times frustrating, it is hoped that the process can be brought to a successful conclusion by the time of the full year results which are expected to be released in April 2018.

This suggests that the company might make an acquisition or be acquired by then. Or, it could do nothing.

[jackson83] 25/1/2018 20:16

Chimers where do you see MMX share price going ? 1xbagger , 5xbagger or 10xbagger this year

[grupo guitarlumber] 25/1/2018 19:38

Could Minds + Machines Group Ltd make you a million in 2018?
[Fool.co.uk]
Rupert Hargreaves
Fool.co.uk25 January 2018

According to Minds + Machines‘ (LSE: MMX) year-end trading update, which was published today, 2017 was a period of growth for the company.

However, despite making progress with revenue and profit rises, as well as improving its balance sheet, shares in the company are down around 10% over the past 12 months.
Maiden profit

The contrast between Minds’ share price performance and the underlying business performance could not be more different. During 2017, the number of domains under management by the group grew 67% to over 1.32m and billings jumped by nearly 100% against the first half. A billings figure of $10m was reported, compared to $5.6m for the six months to June 2017. Total billings of approximately $15.6m are now expected for the full year.

After a strong performance in 2017, Minds, which describes itself as “one of the world’s leading owners and operators of Internet Top-Level Domains,” is now profitable for the first time in its history. This is a huge milestone for the business and marks the beginning of a new chapter. According to today’s update, for the first time, recurring income from subscription services now exceeds operating costs “which have been reduced to below $5.5m for 2017.”

For the full-year management is now expecting earnings before interest, tax, depreciation, and amortisation to be “slightly ahead of market expectations.” Meanwhile net cash on the balance sheet had improved to $15.9m at year-end (up $0.6m year-on-year), “despite settling $3.1m of balance sheet liabilities in the year associated with contracts restructured in 2016.“

All in all, it looks as if Minds has exited 2017 with a stable core business that’s primed for growth in the years ahead.
Time to buy?

I’ve been following it for the past year. After the company reported its half-year figures at the end of September, I claimed that once the firm published its maiden profit, the market would view the business in a different light and hopefully re-rate the stock. With the shares trading higher by 20% in early deals this morning, it looks as if this is indeed the case.

And it looks as if the shares are still undervalued despite today’s gains.

For example, City analysts are currently expecting the company to report revenues of £13m for 2018. The tech sector is currently trading at an average price-to-sales ratio of four so placing this multiple on sales gives a market value of £52m, excluding cash of around £11.1m.

Including cash, the company should be worth £63m compared to today’s £57m. However, considering the high double-digit sales growth rate Minds has achieved in the past, I believe that City forecasts are understating the group’s potential. What’s more, as I covered in April last year, management has been active in returning some of this to shareholders, and I wouldn’t rule out additional cash distributions to boost returns over the next 12 months.



Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

[hjb1] 25/1/2018 19:22

MORE LIKE THE FAULTY MAN WITH A KEYBOARD,..LOL!!

[milesy] 25/1/2018 19:10

Looking for his latest lithium scrip.

[jackson83] 25/1/2018 18:06

😳🚩🙈