Well, if they made those statements earlier this year, then they are for a time period of less than 1 year, probably on a monthly basis. 97% retention rate equals 3% Churn. If you only retain 97% of your customers each month. Then over the course of a year you would turn over ~30% of your customer base. Again, they are not providing you with these exact metrics, which should be a concern, since these metrics are seen as almost a requirement in a subscriber model business.
It wasn't 97% monthly, it was like 97% to-date which covered the better part of a year -- maybe 3-5% loss annually; normal customer turnover, some lost a while back due to trying SIRI (such losses today are bound to be minimal, as SIRI has few subscriptions of its own).
The only other information has been the results of their customer satisfaction surveys, which have ranged from 92% to 99%.
Cash Burn is too high! Good Luck on the 200 million in funding!
Oh, the funding will happen. The precise nature of it is still unknown, but there isn't a snowballs chance in hell of the funding not happening...
I was anticipating more dilution; however, I was also anticipating a higher stock price when the additional shares were sold. I'm expecting now we'll see non-dilutive debt funding, at least for the interim, until the stock price goes back up. We should know soon. |
