The market has been quick to punish underperformance, however the trading update is not so much a sign of a slow down but rather a more grown up attitude, as management is more cautious and looking for optimal business opportunities, focusing more on profitability, not just revenue growth.
ALI FARID KHWAJA | BERENBERG
The cut to guidance is somewhat disappointing, particularly since the company also closed two acquisitions during the period. While over the past five years Monitise’s revenues have almost doubled annually, we note a sharp slowdown in the company’s revenue growth rate. We keep a hold rating.
PETER ROE | TECHMARKETVIEW
Monitise will have to work hard to maintain momentum to re-assure investors that the longer term targets remain realistic, but they have the key advantage of a central position in a broad ecosystem, a transaction base which doubled in the last year, and continued growth in user numbers.