Seems to me that marketing spend in Q4/13 was a bit soft leading to higher than expected EPS in Q4/13, but lower than expected revenue in Q1/14. Then in Q1/14 the marketing spend took a nice jump which led to the lower than expected EPS in Q1/14 - I think McBride said the increased marketing spend resulted in a $0.13/share effect on EPS in Q1. If the Q1 marketing spend creates new paid customers in Q2 like the ("soft") marketing spend in Q4/13 did in Q1 - all I can say is "spend more!"
In the meantime the company continues to generate a whole lot of cash from a whole lot of new paid customers. Bodes well for Q2 with the big jump in marketing spend in Q1.
Guess I'm stuck waiting a bit longer for the golden goose to start laying those big fat divy eggs, but it sure seems like finding the cash to pay them won't be a problem.
If you're an investor - you've been here before - so you don't need me telling you what to do.
Not sure I have seen such a strong buying opportunity. They are making money...profitable...they now have a PE near 10 and PEG at .85. I new they would drop a couple of bucks AH. But I never would have thought it would have shaved off $7!! I am in. (low float has had an effect on magnitude of drop)