# DSE - Dropsuite Limited



## System (20 December 2016)

Dropsuite Limited (DSE) was formerly known as Excalibur Mining Corporation Limited (EXM).

Dropsuite is a Singapore based company providing online Cloud-based backup software that enables small and medium sized enterprises (SMEs) worldwide to backup, recover and protect their digital assets. It has developed the software using its in-house engineering team. Dropsuite distributes its backup software by integrating them into the platforms of some of the world's largest IT Service Providers, who in turn sell Dropsuite's software to their end users (mostly SMEs). 

https://dropsuite.com


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## greggles (14 June 2018)

Dropsuite Limited looks to be making a comeback from lows of 2.7c in May to an intraday high of 5.9c today. The sell down in previous months was on low volume with heavy volume coming in near its lows last month.

At the end of the last quarter the company had $4.35 million in the bank with an operating loss of only $465,000, so they have plenty of time to get cash flow positive before their available cash is depleted.

Today they announced that they have exceeded 300,000 paid users (20% growth for the month) and secured a new partnership with leading Vietnamese hosting provider Mat Bao, furthering their geographic expansion in Asia.


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## greggles (22 June 2018)

I had a feeling this one was going to head higher, and it has. In fact, it's doubled in price in one week. No news since my post above from 14 June, so I wonder if it's retail punters or someone else who's getting on board?


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## greggles (5 July 2018)

Dropsuite's growth in paid users continues unabated. 

At 14 May 2018 they had 250,000 paid users, at 14 June 2018 they had 300,000 paid users and at 4 July 2018 they had 400,000 paid users. The company attributes this growth to a recently re-launched email backup product from a partnership secured in April with a large IT Service Provider.

Nice gap up today. It will be interesting to see their next quarterly revenue figures to determine exactly how these paid users are translating into dollars.


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## barney (5 July 2018)

Hard to keep up with you Greg …

I know nothing about the tech space but according to their presentations, the Company generates about $1.24 per month per user at a margin of around 80% ……. If they now have 400,00+ users per month ?? then that would make for some pretty good numbers at face value which may explain the good looking chart 

I see that last Quarter they generated $700K of revenue but also had about $700K of staff costs ….. That ratio will need to be improved from a fundamental perspective. Worth watching for sure.


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## galumay (5 July 2018)

barney said:


> the Company generates about $1.24 per month per user at a margin of around 80% …….




but...



barney said:


> I see that last Quarter they generated $700K of revenue but also had about $700K of staff costs …..




..which is a margin of less than 0!


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## barney (5 July 2018)

Yeah when I saw the wages amount it did raise a small red flag which is why I mentioned it ….. 

I assume these types of businesses are a bit "wage heavy" until they scale their operations up which is obviously their plan …. 

They do have $4.3 million in the bank so if they can cover all costs/wages etc with current income that's not a bad platform to start from.  The market appears to be rewarding their last 2 announcements which indicate growth.

Tech is not my thing but if you compare it to a Spec mining Stock who are constantly chasing funds from shareholders in the early years, the numbers DSE is throwing up appear to make it worth keeping an eye on IF they continue to grow their User base. There's always a few IF's of course


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## greggles (5 July 2018)

barney said:


> I assume these types of businesses are a bit "wage heavy" until they scale their operations up which is obviously their plan ….
> 
> They do have $4.3 million in the bank so if they can cover all costs/wages etc with current income that's not a bad platform to start from.  The market appears to be rewarding their last 2 announcements which indicate growth.




With these kind of businesses, the struggle is to get cash flow positive. When they get there, they are generally re-rated as a lot of the risk is taken out of equation.

So the market will be looking carefully for the break even point. The next quarterly should provide a good guide as to how they are going. With $4.3 million in the bank they have a fair bit of time up their sleeve.

I wonder what the churn rate is like? I haven't seen any mention of that but my guess is that it would be fairly minimal as they appear to be targetting the corporate sector. 

I'm just sitting on the sidelines and watching due to the price action.


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## greggles (31 July 2018)

Dropsuite continuing to grow paid users and revenue based on their Quarterly Activities Update which was released today.

DSE has experienced 50% growth in paid users in the last month, increasing from 400,000 to ~600,000.

Customer receipts increased 21% quarter-on-quarter to $860,000 (Q1: $707,000). The company said that this quarter's receipts from customers doesn't reflect the recent user growth due to partners' payment terms ranging from 30 to 60 days from date of invoice.

Quarterly cash burn has stabilised at -$318,000 (or -$518,000 normalised) and is an improvement on the first quarter (31 March 2018: -$610,000).

The market seemed to like the quarterly and the DSE share price finally cracked the 14c mark and is currently trading at 15.5c with an intraday high of 16c. Volume today is at all all-time high so there is some real conviction in today's move up.


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## Ann (23 March 2019)

This had a nasty falling knife end of October 2018 after some bad reporting news. Currently pretty much all of the indicators I have looked at are pretty much flat line along with the price. The one indicator which made me look twice and put this stock on watch was the slowly rising weekly Twiggs Money Flow indicator. Is this stock potentially coming back to life ever so slowly?


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## peter2 (30 March 2019)

@Ann  yes it is. 

DSE provides cloud email backup services for businesses. The sharp drop in their share price was due to one of their "partners" deleting 420K low volume email users from their system. DSE has been working to establish additional partners and grow the business. Like Ann, I like the chart and it looks like a BO of the base pattern is imminent. The business is still making a loss as it tries to grow.


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## peter2 (29 April 2019)

This is my follow up selection for the May19 monthly comp.
Price spiked at end of March after improving business news so I selected it for April. Since then, price has drifted lower as there's very little bids between 0.035 - 0.040. Further good news in April was a no show. I hoping there's some in May.


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## peter2 (30 May 2019)

This is my selection for the June19 monthly comp. Third consecutive month with no success so far.
Price is back near the lows, so I'm thinking the probabilities favour the upside. An acceptable RR if price can get back to 0.045. The volume indicators (OBV, TMF) are dropping significantly which isn't bullish.


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## Smurf1976 (13 June 2019)

peter2 said:


> Since then, price has drifted lower as there's very little bids between 0.035 - 0.040.



Just noticed that someone (not me) has a bid for 1,050,000 shares at 2.8c and there's another one for 510,000 at 2.9c

Perhaps there's some interest emerging?

I've been watching it since your previous posts.


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## peter2 (21 June 2019)

The reward:risk ratio still looks good while price is near 0.03 (initial target 0.045). There's another week before the EOM and I should be looking for something with a pulse in the next monthly comp.


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## peter2 (26 July 2019)

Did I see this old dog move during the week?  
The volume has picked up, OBV and the TMF are also rising.
I might have found my selection for the Aug monthly comp.


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## peter2 (10 October 2019)

Since my last post (arrowed) it looks like this old dog moved in it's sleep and a few fleas jumped off (sold). However, while I've been otherwise occupied it looks like there's been a spike in demand (0.03 to 0.04).


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## debtfree (29 November 2019)

Going to try my luck with DSE in the December Comp. It looks like someone knows something here @peter2, price has been strong OCT/NOV. Is it trying to fill in the gap from last year?

Weekly & Daily trend is up, Volume is behaving nicely, both TMF & OBV are rising. 

Target .09 (60%) Fill in Gap


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## aus_trader (27 December 2019)

Continuing to grow the business from a slow down that was experienced in June of this year.






Less concentration of revenue coming from the Americas (was 91%), so the business is more diversified and has users pretty much globally now.











Entered for Jan 2019 stock Tipping.


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## aus_trader (16 January 2020)

We have lift off...


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## debtfree (16 January 2020)

aus_trader said:


> We have lift off...




You certainly have @aus_trader and good luck to you.


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## debtfree (17 July 2020)

Yes it finally filled in the gap @ .09 cents but only good if you were still hanging in there after the sell off in the market (Feb/Mar)  or you got in there after the fall had finished.


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## debtfree (7 October 2020)

Looks like DSE is gaining some traction now. Where to from here? .15 looks on the cards if .09 is broken.


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## greggles (8 October 2020)

debtfree said:


> Looks like DSE is gaining some traction now. Where to from here? .15 looks on the cards if .09 is broken.




It's almost there, but looks like it needs a catalyst to get it above 9c. It's spent the last four trading sessions trading between 8c and 9c. It will break either up or down eventually, but which way? 

Any news due soon?


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## debtfree (8 October 2020)

I agree with you, not quite sure about future news coming out @greggles but there has been a bit of interest lately from a US-based Fund Manager as reported by Stockhead.com 27th August (see below)

The Cybersecurity sector has had a booming 2020 as companies new to operating remotely recognize it's importance in light of the impact cyber attacks can have.  
A handful of fund managers were buying into small caps in this sector.  US-based Topline Capital also bought more of its cybersecurity holding, Dropsuite (DSE) and now has over 13 per cent. 

Since this date they have brought more so they must see some value.


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## debtfree (15 October 2020)

Weekly view below: Finally through the .09c today.


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## Dona Ferentes (19 November 2020)

and a rebound today on *no news*, low volume but up and closing on day's high

3 month, daily


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## frugal.rock (21 December 2020)

Might be worth a look at again, for anyone so inclined.


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## Miner (21 December 2020)

frugal.rock said:


> Might be worth a look at again, for anyone so inclined.



One of the paid financial letter recommended DSE as hot stock today. By the time I could read and action, the price has gone up by 20 pc. Share speculation, investment or trading is a bloody full time job. Can not be done sneaking preview on phone in between shovelling dirt


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## Dona Ferentes (2 May 2021)

debtfree said:


> A handful of fund managers were buying into small caps in this sector.  US-based Topline Capital also bought more of its cybersecurity holding, Dropsuite (DSE) and now has over 13 per cent.
> Since this date they have brought more so they must see some value.



Topline Capital holding is now 19.8%.

Am not really seeing DSE as a pureplay cybersecurity holding, more a product that will win or lose on facility of access and cost (there is _churn_). But the market is growing and cloud penetration / uptake still only about 25% (they say)

As  a _"cloud software platform enabling businesses to easily backup, recover and protect their important business information ..... Dropsuite's products include website and database backup, email backup and archiving, Microsoft Office 365, Google Workplace and Reseller Provisioning Platform."_

90% of sophisticated cyber-attacks start through email
62% of breaches and data loss occur through human error

*Microsoft Service Agreement - Clause 6B *
Microsoft is not liable for any disruption or loss …. We recommend that you regularly backup your content and data that you store on the services or store using Third Party Apps and Services.


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## Dona Ferentes (13 August 2021)

Dona Ferentes said:


> 90% of sophisticated cyber-attacks start through email
> 62% of breaches and data loss occur through human error
> *Microsoft Service Agreement - Clause 6B *
> Microsoft is not liable for any disruption or loss …. We recommend that you regularly backup your content and data that you store on the services or store using Third Party Apps and Services.




_Cloud based _website and database backup and monitoring service  Dropsuite has appointed Petra Capital to manage a $20 million placement to institutional investors. Priced at *21¢ per share,* the offer comes at a 10.6 per cent discount to the previous close price.

The capital will go towards an acceleration of _growth through acquisitions_, complementing organic growth.

The company has 500,000 users across 100 countries and 354 IT reseller partnerships globally. It backs up Office 365, Workspace Gmail, Hosted Exchange, Open-Xchange,  IMAP/POP, and websites to the cloud, It also offers eDiscovery solutions and business intelligence analytics for email.                                                               

_........... 6c to 24c in a year. M/C around $140 million_


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