Hi there,
You are likely brining attention to HelloPal due to its recent spike. The company is a similar to a Rosetta Stone (language app) and a live streaming company - although it has been transforming itself into more of a social media company. When it launched its platform globally this year, user base and users increased in a meaningful way. This led to a spike in revenue and it is now averaging more than $1M monthly. The past couple of months it has averaged revenue of above 1.5M (see attached chart)
User base is now at $5.2 million and daily active users have jumped to 15,000 from 10,000. In the grand scheme of things, these are still low penetration levels. However, the company has managed this with little to now marketing relying instead on organic growth and word of mouth.
The company has a market cap of $33M which is reasonable for a company that is now generating $1M a month which at minimum, would translate into $12M a year and a forward P/S ratio of 2.75. The company is not yet profitable, but net loss has been narrowing which is good news. On the flip side and as highlited in the company's Going Concern section (ability to operate), the company does have cash flow issues. It has considerable cash burn, has a working capital deficit and a big shareholder deficit ($15M).
This means, that the company is likely to issue shares to keep operations going. It recently closed on a PP and increased revenue will certainly help. It is worth nothing however, that it is not in the greatest of financial shape.
This company is one to approach with caution and is only for the high risk investor.
Mat