OneSoft Solutions Inc Quick Update - $OSS.v
Quick update after Q2 2023
OSS reported over a week ago and held a conference call. This was the first quarterly conference call for the company. Results for the quarter were in line my expectations. The stock has been on quire a run since the start of July with it being mentioned by a popular investor on YouTube.
Quarter Recap
Revenue was up 87%.
Recurring revenue was up 59%.
Gross Profit was up 109%.
Still running an EBITDA loss .
0.2 million this quarter.
They plan on increasing their development staff to respond to customer requests so expenses to increase.
Call Notes
Despite it being their first conference call I didn’t get a ton of new detail.
Internal Corrosion minimum viable product (MVP) (launched last June) has 2 customers and orders out to a few others.
External Corrosion is a large opportunity due to the non-piggable opportunity. Although it will require a bit of effort.
Crack Management MVP module and Risk module to be launched commercially in H2 2023.
Risk module would replace several on-premise legacy products that the operators are using. First MVP to be out in H2 2023. Probability of Failure is done and out for private preview.
They have the MVP defined for bending strain geohazards.
Closing Thoughts
They always have lots under development. They are inching closer to break even, though it looks like it’s been pushed back. They have enough cash at the moment to fund a small cash burn for a few years.
I’m expecting that as the new modules (specifically Risk and External Corrosion) will be an easy sell to the existing customers as well as greatly increase the TAM. Which quarter does this happen? They are closer than last quarter is all I know.
There has been some hype with the stock in the last couple months. I have taken the opportunity to take a small amount off the table. I still have a meaningful position to follow the company closely. Given the lack of profitability, I would have a hard time making it an overweight position. This is my one and only “innovator” company.
For a company listed on the Venture, they are trying their best to get the word out to institutions. On top of hosting the conference call, they even did a Q&A for the unanswered questions from the call. I think the question around pricing is particularly valuable. You don’t see that on many microcaps.
Thanks for reading.
Dean
* long OSS.v.