They were a week later than originally promised, and as expected the half-time results from AIM-listed, social media SaaS pure-play, SocialGO, did not make pretty reading. After last month’s revenue warning and ‘creative’ funding arrangement with related distributor, Catalis SE (see SocialGO warns - and gets social with Catalis), SocialGO revealed revenues for the 6 months to 30th June 43% lower at just £247k, with net losses of £512k, albeit £100k ‘better’ than in H1 2011.
The ‘problem’ is that although SocialGO “has seen large numbers of people sign up for the free 14 day trial, the Company has struggled to convert the expected numbers to full paying customers.” Perhaps this is because the product doesn’t quite hit the spot; indeed “feedback from early discussions with some large cable companies has shown that there is a requirement for some significant development work around the ability of the product to be accessed via mobile technologies. This is being scheduled into the development plan for late 2012 or early 2013.”
Whether SocialGO has that much time to fix the product rather depends on whether their arrangement with Catalis to in effect fund the company at current cash-out rates is sufficient to finance the extra R&D required. SocialGO had £126k cash in the kitty at 30th June. The market did not take kindly to these results, and marked SocialGO’s shares down another 10% to just 0.5p, valuing the company at around £220k.