Now you can get it cheap… €5.50…
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I’ll put the interview link with the new CEO here too. I at least got a positive feeling from it.
See you in 5 years as the biggest in Europe 
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Efecte lowers revenue guidance 
https://www.inderes.fi/fi/tiedotteet/efecte-alentaa-vuoden-2018-liikevaihto-ohjeistusta
"Efecte lowers its revenue guidance for 2018
Efecte lowers its 2018 revenue guidance based on preliminary revenue data for the third quarter. Based on preliminary data, revenue growth for 1-9/2018 was slightly over 18%. SaaS grew significantly faster, but did not fully compensate for the growth-reducing impact of the old business (maintenance, one-time licenses).
Export investments have significantly increased the sales project pipeline, but have not yet led to the expected revenue growth.
The growth rate for the remainder of the year is estimated to be roughly similar to the beginning of the year. Growth in the fourth quarter will be influenced by factors such as potential one-time license sales, which could have an impact of several percentage points.
New guidance:
Full-year revenue growth is estimated to be around the early-year level of approximately 18%, with a variation of a few percentage points. Due to growth investments, the company’s operating profit (EBITDA) is clearly negative. Profitability for the remainder of the year is expected to be better than at the beginning of the year."
Previous guidance:
The company has made strong, front-loaded growth investments in export markets, especially in Germany and Sweden, which are expected to accelerate growth from the second quarter onwards. Annual revenue growth is estimated to exceed 20%. Due to growth investments, we expect the company’s operating profit (EBITDA) to be clearly negative. The beginning of the year is expected to be less profitable than the end of the year.
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This isn’t pleasant reading, but they’re communicating nicely “immediately” after the quarter changed.
And in my opinion, there isn’t much drama here, as SaaS has continued to grow, and the slowdown in LTV growth is due to the “old” business declining more than expected.
It will be interesting to read in the earnings report how precisely and what they say about the progress of sales in new areas. That’s what’s driving the share price here.
Time to put on those buying pants 
if it dips below the subscription price now. 
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No need to panic at this point, let’s wait for the new CEO to lean back in their chair. Let’s chill and see Q3 and listen to Petri’s comments.
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Where does it say that? My understanding is that such an interpretation cannot be drawn from the press release; rather, it was precisely the much-praised SaaS business that was the stumbling block:
Efecte is unlikely to invest in old business for exports 
From that, I interpret that SaaS has continued to grow well. We’ll see more details in the earnings report. 
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Based on Inderes’ company update (10/9/2018), no major change for those in for the long haul… The valuation level is very attractive for a patient investor, SaaS is growing at a good pace… etc.
Edit: -8% on the board. Makes me smile a little, because no sane investor is in this for a quarter. Quite an overreaction. 
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Added for 5.10.
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{“content”:“I also added a little. I don’t see a reason for such a big drop in this change.\n\nI’ve been sitting on it since the announcement and this is the first addition.”,“target_locale”:“en”}
So, the choice of words has now succeeded in giving a more positive picture than what is actually the case. Of course, the SaaS business grows more than other businesses. However, it does not grow as much as predicted. Nowhere is it stated that other businesses have fallen short of forecasts. The announcement is correct even if the growth of the SaaS business has clearly decreased from what was previously anticipated.
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Isn’t it true that despite the wording, the market mostly got it right and Efecte is down 8%?
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No one probably noticed this: Efecte gets a “major deal” in Germany
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Great news. It’s fantastic that we’re getting a proper reference in Germany, and if that paves the way for more! Yes!
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Efecte’s business review published:
https://www.inderes.fi/fi/tiedotteet/efecte-oyjn-liiketoimintakatsaus-1-92018
"Efecte Plc’s Business Review 1-9/2018
- Revenue was EUR 8.8 million, up 18%
- SaaS revenue grew 24% and accounted for 48% of total revenue
- Services revenue grew 21% and accounted for 37% of total revenue
- Investments to accelerate international growth reduced profitability
- EBITDA was EUR -1.3 million and operating profit was EUR -1.6 million."
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I was wondering how much revenue should grow in relation to growth investments? For example, this year’s revenue growth was 18% (1.4 million) and operating profit was -1.6 million, so growth investments were clearly larger than the growth itself. The numbers should probably be the other way around? Can you just roughly deduce from that if growth is expensive? What has the real cost of that growth been? How much money can growth demand at most? =D if I asked it that way.
Then… I’ve also been pondering this (and it’s not the first case) that if we imagine that Efecte now decided to stop pursuing growth and run the business with existing customer relationships, what would the numbers and multiples roughly be at the current share price? Could/would @Petri_Aho, for example, elaborate a bit? Petri has already explained this case a few times along the way with flip charts and videos, and I don’t know how relevant it even is to think that Efecte wouldn’t decide to grow anymore. =)
P.S. This case certainly requires patience from an investor, but I (I) just have to stay on board, follow along, and take it easy. I also refueled this a bit more just before the guidance cut, and now we’ve been firmly in the downhill rally. But just by following the company’s true state, there’s nothing else to wonder about.
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This is a very relevant question. 18% growth sounds nice, but if it’s achieved with unreasonable investments, then there’s no joy in it. This will, of course, be explained by saying that the growth investments will have a significant impact in the future.
Could someone explain where these growth investments are directed? If they are directed towards product development for a new product, that is certainly smart. If, on the other hand, they are used to develop an existing marketable product, then I somehow cannot see it as a direct growth investment, because the funds invested in it generate less revenue than they consume, meaning it is mainly about maintaining the product’s competitiveness.
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Individual larger deals can significantly fluctuate quarterly results one way or another when talking about such a small company. These deals may not necessarily be recorded evenly across every quarter, but costs are recorded and the market reacts accordingly in that moment. Efecte is definitely one of those traditional “buy and forget” stocks, from which it’s truly difficult to draw conclusions based on individual quarters alone whether it will be a good investment or not.
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The same applies to revenue. With this logic, no conclusions can be drawn from 18% growth, because it could just be due to individual deals. It seems to be a trend that negative things can always be dismissed with some excuse, but positive things are always taken into full account, and then people forget to consider how sustainable the continuation of the same momentum is.
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Yeah, it’s important to consider how much that growth ultimately cost. It’s also a fact that every euro that goes to something non-productive is always taken from somewhere else. Anyway, “growth at all costs” isn’t always the best strategy. However, in this case, one must understand that the company is expanding into its own focus area where its competitive products are the weapon, so in that sense, aggressive growth ambitions are allowed and should be on (and it’s not done with any crazy debt leverage). And, fortunately, the company itself also admitted to this subdued growth and, I understand, talked about cutting costs, so it’s only good if/when the company itself wakes up to this issue.
Jarmo might be right in a certain way. It’s known that in these SaaS products, costs come first. It could be that next year these growth investments will start to show properly on the bottom line. But when you consider that the company is achieving 18% growth with a loss-making result in an area/market that is growing over 20%, then something is clearly wrong.