Insights

Why Limeade (ASX:LME) shares are bouncing around today

The Limeade (ASX: LME) share price is bouncing around today, and has ended up where it started. Here’s how its earnings report read.
The post Why Limeade (ASX:LME) shares are bouncing around today appeared first on The Motley Fool Australia. –

flat asx share price represented by investor shrugging

The Limeade Inc (ASX: LME) share price is having a rather wild day today (well, mildly wild).

At the time of writing, Limeade shares are flat at $1.50 apiece. But that’s a ways away from where the software solutions provider opened this morning at $1.56 a share (up 4% at the time). Just after open, the company dropped to the current share price, so it seems investors can’t quite make up their mind on the results of Limeade’s earnings report that was released this morning.

The report covers Limeade’s full 2020 financial year (which runs from January to December).

What did Limeade report this morning?

It was an unquestionably strong set of numbers that Limeade delivered today. The company reported revenues grew to US$56.6 million, up 19.3% from the US$47.4 million Limeade reported for 2019. Of that US$56.6 million, US$54.9 million came from recurring subscription revenue, a 20.8% rise over 2019.

Limeade also helpfully pointed out that between 2015 and 2020, revenues grew at a compounded annual growth rate (CAGR) of 24%.

Having said that, Limeade’s cost of revenue also rose 12.6%, from US$11.1 million in 2019 to US$12.5 million in 2020.

Total operating expenses also rose 11.4% to US$43.1 million, up from the US$38.7 million from 2019. The largest component of this rise in expenses was research and development costs, which rose 14.2% to $16.8 million. An increase in staff count (from 236 in 2019 to 271 in 2020) also didn’t help.

Even so, the company reported a gross profit of US$44.1 million, up 21.3% from 2019’s $36.4 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at US$1.2 million. That was a 160.3% improvement on 2019’s earnings loss of US$2.1 million. Gross margins were also up 1.3% to 77.9%.

On the net profits after tax (NPAT) metric, the company still recorded a net loss of US$0.3 million, but that was a 92.1% improvement on 2019’s NPAT loss of US$3.4 million.

The company’s cash position sits at US$31.5 million, with no net debt.

Looking forward to 2021

Limeade has given some pre-emptive guidance for the 2021 financial year as well today. The company tells us that it expects US$50-53 million in revenues for the year. It also expects to lose between $5-8 million in EBITDA and to lose US$7-10 million on the NPAT metric.

Here’s some of the commentary the company gave regarding this guidance:

COVID-19 slowed new customer growth in 2020 and therefore impacted revenue outlook when coupled with 2021 forecast churn… Growth in new 2021 customer acquisitions will continue to be seasonal, accelerating in H2 and contributing to revenue growth in 2022.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Limeade, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Limeade (ASX:LME) shares are bouncing around today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!