A couple of days ago, MassRoots Inc (OTCMKTS:MSRT) issued its annual report for FY2015. The report was released after the closing bell, and so the market took its own sweet time to before reacting on the announced numbers. Even in the absence of bad news, MassRoots stock took a nose dive and ended in red early in this week.
The buzz
In last trading session, the stock price of MassRoots declined more than 8% to close the day at $1.26 per share. The session proved to be roller-coaster ride for MSRT. A sharp decline in the first half of trading session sent the stock bleeding, making an intra-day low of $1.24. As per the released report, MassRoots reported $386,000 in cash. The current liabilities amounted to $194,000 while yearly revenue came at $213,000. MassRoots reported net loss of $8.4 million for FY2015.
All things considered, the company did commenced generating revenues in 2H2015. That does not help much with convincing investors and making them feel at ease with the increasing net loss. The issued report mentioned that MassRoots generated $150,000 in revenues in the last four months of 2015, initiating from sponsored posts, newsletter highlights and advertising on the network.
The take-away
MassRoots report highlights a handy chart indicating substantial user growth over 2015, moving from nearly 250,000 users in March 2015 to almost 800,000 in January 2015. In its official reports, the company states its “users” as every customer who has an account with company. This indicates there is no sign of active usage in a given period of time.
It remains a mystery why the firm considered this was an effective metric and how it could be valuable for shareholders in an industry which offers monthly active users or daily active users’ figures as the benchmark for popularity and engagement.
