Probility Media Corp (OTCMKTS: PBYA) is rallying today on news of an expanded service agreement with Amazon Fulfillment. The company will continue to work with Jeff Bezos’ behemoth to improve their business order fulfillment. PBYA announced in the press release that revenues are up 85% from a more streamlines operating model.
“ProBility has been executing a disruptive strategy of defragmenting the vocational education and training market place and has experienced consistent sequential growth over the last seven quarters. The Company reported $8,913,956 of revenue for fiscal year 2017 versus $3,089,974 for fiscal year 2016,” stated Evan Levine, CEO of PBYA. “ProBility is committed to continue to grow our revenue streams while concurrently strengthening our bottom line and becoming a more efficient operation. These steps will enable us to use our sales and marketing expertise to accelerate revenue growth while decreasing costs. However, we do anticipate a reduction in short term revenue during the transition period. The Company will be announcing results for the second quarter 2018 in the coming weeks.”
Probility Media Corp (OTCMKTS: PBYA), according to the company letterhead, is an industrial education and training technology company headquartered in Houston, Texas, offering immersive technologies, digital learning and compliance solutions for a wide variety of industrial trades. ProBility is executing a disruptive strategy of defragmenting the education and training market place by offering high quality training courses and materials utilizing mixed reality and digital animation to prepare the workforce for excellence. ProBility services customers from the individual to the small business to the enterprise level corporation.
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Here is another snippet of interest from the release, “Retail operations have been unprofitable for some time due to declining gross margins and the cost of managing our own fulfillment operations. As a result, ProBility is focusing its sales efforts on the company’s own published materials and is deemphasizing third party compliance solutions, such as codes and standards and printed training and reference materials that carry lower margins and higher handling costs. The inventory from the retail location has now been moved to Amazon and fulfillment and order entry positions have been eliminated. The company expects these steps to save over $500,000 per year on a calendar basis.”
Besides this news mentioning AMZN, PBYA previously rallied after signing a deal with Georgia Public Broadcasting (through their wholly-owned subsidiary, Disco Learning Media), but the stock still saw resistance at the $0.06 mark; however, this news – proving the company is getting leaner -could push them past that barrier.
“We are thrilled to be working with GPB once again, and on this exciting endeavor. GPB is one of the nation’s leaders in providing high quality, educational content and this project will significantly expand GPB’s presence in the digital learning landscape by bringing innovative augmented reality content to more classrooms,” said Juan Garcia, President of Disco.
Financially, PBYA reported a 118% increase in revenue in Q2 that came in at $4 million. Revenue for the six months ended April 30, 2018, was also up by 165% to $7.8 million. Yet, a wider than expected net loss of (-$4.4) million compared to a net loss of (-$505, 704) reported last year same quarter poses serious a concern for investors.
Probility Media Corp (OTCMKTS: PBYA) has a market cap of 1.76M and a float of 28.38M. The company is looking to break out of bearish trend by improving efficiencies and improve their revenue model. PBYA still has some way to go, but this could be a company to watch in the short-term. Sign-up for continuing coverage on shares of $PBYA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PBYA, either long or short, and we have not been compensated for this article.