Broeb22 Posted August 23, 2020 Share Posted August 23, 2020 Does anyone have a clue why this seemingly high-return business fell off a cliff and hasn’t recovered? Can’t find any news on what started in mid-2019 and has still been a drag on the stock? Link to comment Share on other sites More sharing options...
yuval Posted August 23, 2020 Share Posted August 23, 2020 They made a relative big acquisition in Brazil (RT) that made the ARPU go lower. Plus GM made changes to the terms of the OEM they had with them (3 monthes paid in advance for every costumer instead of 6). They also.made some changes in the way they work with the insurance companies (can't remember the details from the top of my head) The Brazilian Real weakness also made revenue growth to slow down. Management forcast 2021 to be a much better year with regard to subscription costumers growth. Link to comment Share on other sites More sharing options...
Spekulatius Posted August 23, 2020 Share Posted August 23, 2020 They are dependent on new car sales in emerging countries (Brazil, Israel etc) and those are down substantially. Currency is another factor - The Brazilian real is down more than 20% compared to the USD. Long Term, I would be worried about obsolescence risk, since I would bet that in a few years from now, all new cars will have internet connectivity build it, which might make ITRN product redundant. Link to comment Share on other sites More sharing options...
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