Dubli lose $10.3 million in 2016, execs make over $1.5 mill
For a company that’s been around since 1999, you’d think Dubli (Omnito) would have had plenty of time to fine tune its business model into profitability.
Things were looking pretty bleak this time last year, with Dubli reporting $13.9 million dollars in losses.
The good news? Dubli managed to reduce their losses in 2016.
The bad news? The company still managed to blow through $10.3 million dollars.
Dubli’s annual 10-K filing reveals revenue dropped from $21.3 million in 2015 to $17.7 million in for 2016.
Gross income decreased to $6.9 million in fiscal year 2016 from $8.2 million in fiscal year 2015 as a result of the lower sales.
The net result is a $10.3 million loss for Dubli in 2016.
That figure is $3.6 million less than Dubli lost in 2015.
Dubli don’t attribute the decline in losses to an improvement product sales or viability of their business model, but instead claim it’s
a result of a decrease of $4.0 million in non-cash equity compensation and a $509,000 decrease in the fair value of a derivative liability partially offset by an increase of $1.5 million in rent and office expenses.
Four figures in particular stood out to me:
- $14.2 million in revenue from “membership subscription fees and commission income”
- $2.8 million in revenue from “business license fees”
- $10.8 million in expenses for “cost of revenues” and
- $17.4 in expenses for “selling, general and administrative expenses”
All up, Dubli’s cost of doing business was just $242,052 less than their revenue sources combined. And that’s not taking into consideration the $6.8 million additional cost of generating that revenue.
Despite ongoing sustained losses, Dubli executives were collectively compensated over $1.5 million dollars. Another $829,000 was spent on executive travel allowances.
I couldn’t find an Income Disclosure Statement on the Dubli website revealing what the average earnings for a Dubli affiliate was for 2016. Nor is this information provided in the 10-K form.
As mentioned above, $14.2 million out of Dubli’s $17.7 million revenue for 2016 was generated via membership subscription fees and commission income.
Elsewhere in the report, Dubli acknowledge
regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers.
Consumers for Dubli appears to include affiliates, with their being no specific distinction between Dubli affiliates and retail customers.
With that in mind, Dubli claim revenue is
generated primarily from
(a) business license fees paid by BAs and Partner Program business customers who established customer websites for their own customers;
(b) membership subscription fees from BAs and their customers’ VIP membership packages;
(c) commission income from participating online stores
We know (b) is the primary revenue generator, which begs the question how many retail VIP membership customers does Dubli have?
This information is not publicly disclosed by Dubli.
What I can tell you is that Dubli affiliates are ‘required to purchase membership products for resale‘.
These memberships are sold to Dubli affiliates in “bundles”.
Whether Dubli checks if VIP memberships purchased by affiliates are infact resold to retail customers is unclear.
At the time of publication Japan is the largest source of traffic to both the Dubli (73%) and Dubli Network (40%) websites.
Dubli state that for 2016,
revenue generated from foreign operations represented approximately 71% of total revenue.
Underscoring the ineffectiveness of Dubli’s affiliate-base, the company acknowledges that to date it has yet to award any affiliate with a land parcel in the Cayman Islands.
Dubli acquired 15 undeveloped lots back in 2010. The lots were
intended to provide incentive rewards to the best performing DubLi Network Business Associates upon attaining certain performance objectives.
The company also claims its focus has shifted away from affiliates to
obtaining business clients, and, through these business clients, obtaining individual shoppers in large numbers” specifically targets business with a customer-base of over 50,000.
Either way, with the expense of doing business consistently outweighing revenue brought in for a number of years now, Dubli obviously needs to change its business model.
So what’s happening in 2017?
Well, rather than address what appears to be an unsustainable business model, the company has announced its intention to roll out an Ominto branded mobile app.
As far as I can tell, there are no plans to make any changes to the membership side of the business.
Dubli is currently keeping itself afloat via ‘cash generated from equity financing and debt financing and short term advances‘.
What do you think the chances of an Ominto mobile app generating enough revenue to offset millions of dollars in losses next year are?
Thnaks for the article and the analysis. I’m a Team Leader (BA) who joined Dubli in mid 2016.
I agree there are ongoing challenges, like any other businesses out there especially in 2016 for obvious reasons, I’m impressed by how DubLi managed to end this year this way.
The launch of new shopping sites delayed till May, and it took few months for it to show the advantages of having this new platforms after the ongoing enhancements.
This may explain why the revenues appears relatively low. In my humble opinion, what DubLi did in 2016 is establishing the string pillars and foundations for what’s gonna happen in 2017 onwards.
Why?
2016 comp plans is the greatest I seen in the industry, The shopping site and its customer supports is amazing, the cash back is paid within the time frame (60-90 days), The seasonal marketing campaigns (customer acquisitions), and the latest partnerships with Quant systems and /Lani Pixels will change the dynamic of DubLi/Ominto.
Finally, Ominto is in the final stages of going Live in NASDAQ.
While many people bit over the past years DubLi won’t survive today, and I respect their opinions, I guess it is just the time to admit that DubLi/Ominto is here to stay.
Finally, Remember this post couple of years from now, when DubLi/Ominto becomes the “Google of online shoppers” all over the Word.
Once again, thanks for the article.
So Dubli was running this new Ominto shopping platform since at least May 2016, and still managed to lose over $10 million?
And you think after years of losses they’re going to magically turn things around?
See you at the next filing I guess.
The 10 million loss is not a result of relaunching the site or deficiency in business. Losses in financial statements are costs of operations this is basic Fact.
When you acquire 2 new partners to upgrade your business model and take it to next levels, of course this come at a price.
In additions, the transition to new platforms was not easy having many customers prior the launch and paying them back. All these are costs.
The answer to your second question is I don’t think so, I believe so and very confident of it. As you said Oz, See you at the next filings.
The good thing about financial filings is a company has to attribute a loss to something.
Dubli lost $28.2 million on “cost of revenues” and “selling, general and administrative expenses”.
Going on past years, this is the cost of their MLM business model – in that all it does is lose money. These losses have been consistent for a few years and continually show the shopping platform doesn’t work as a business model.
It was the same story last year and there was no new platform to blame the losses on.
Dubli/Ominto has been “about to list” on NASDAQ for more than eight years.
I wouldn’t stay up nights waiting for the listing to happen.
Sharing Success and great news for Dubli-nation and those searching for information about DubLi.
1- As of December 31, 2016, the Company recorded cash and cash equivalents of $11.9 million, an increase of 467%, compared to the $2.1 million at December 31, 2015.
Total current assets at December 31, 2016 was $29.6 million compared to $8.0 million at December 31, 2015, an increase of 270%.
Total assets increased 565% to $65.8 million at December 31, 2016 compared to $9.9 million at December 31, 2015.
At December 31, 2016, total deferred revenue was $25.9 million, an increase of 300% over the same period of fiscal 2016.
2- Trading on the NASDAQ Capital Market will commence on March 20, 2017, and the company’s shares of common stock will continue to trade under the ticker symbol “OMNT.”
Cheers.
This is the sort of meaningless news Nuyten covers over at BusinessForHome.
Have Dubli stopped losing millions of dollars each year? That’d be a story worth covering…
how is this scam still slogging along?
I mentioned in my earlier posts “see you next filing”, and “the NASDAQ listing was in final stages”, but the responses I got were opinion based mixed with ancient history.
Try to Catch up.
Now when things happened? you guys find it so hard to believe and want to discuss irrelevant stuff that, and again based on ancient history.
I believe in this quote: “you may deceive some people for some time, but you can’t deceive all people all the time.” This can apply to DubLi, my posts, your posts etc.
SCAM? I guess after so many years of repeating the same thing, we are way beyond that point now. Actually, “SCAM” maybe a perfect description of certain “individuals” and so called “ex-Leaders” who misrepresented the business and literally abused it. Again, read my quote above 🙂
To put it simply folks, When DubLi customers (FREE & VIP) are being PAID, and when Business associates are being PAID, where do you see a “SCAM”?
Last but not least, any body that has any business sense, knows that all great successful companies went through their tough times. Go review business history about the giants around us if you like.
This is exciting time. I sincerely believe that this is the year where people are gonna talk about DubLi and how such a great vision is becoming a great reality.
Have a great one!
Yeah but… has Dubli stopped losing millions of dollars each year?
Obviously if they haven’t then the business model isn’t working, is it?
The MLM side of the business has been losing money for years. It’s not sustainable.
The Dubli execs paying themselves millions each year aren’t going to have to foot the bill when the time comes, it’ll be all the VIP affiliates who were sold promises and have nothing to show for it.
If you haven’t got a profitable business model after eighteen years, don’t you think it’s time to throw in the towel?
Really? throw in the towel?
Please re-read the comments section top to bottom,and catch up.
How about you stop ignoring the fact that Dubli has and continues to lose millions of dollars each year?
At the end of the day Dubli is a business, not a charity. When paying affiliates continues to rack up millions in debt each year, how long you think that’s going to last?
dubli’s losses are still going strong:
now dubli is trying to get on NASDAQ.
i may be wrong, but i get the feeling that dubli is not about the ‘business’ but about some stock market ‘game’.
How about you stop insisting on repeating points that are based on history over and over? Why don’t you extend them to the CURRENT REALITY of where things at? WAKE UP!
The following is the current reality of where are we:
1- As of December 31, 2016, the Company recorded cash and cash equivalents of $11.9 million, an increase of 467%, compared to the $2.1 million at December 31, 2015.
Total current assets at December 31, 2016 was $29.6 million compared to $8.0 million at December 31, 2015, an increase of 270%.
Total assets increased 565% to $65.8 million at December 31, 2016 compared to $9.9 million at December 31, 2015.
At December 31, 2016, total deferred revenue was $25.9 million, an increase of 300% over the same period of fiscal 2016.
2- Trading on the NASDAQ Capital Market will commence on March 20, 2017, and the company’s shares of common stock will continue to trade under the ticker symbol “OMNT.”
Dubli lost $10.3 million in 2016. That’s the current figure. They haven’t filed anything in 2017 for me to go over yet.
Losing 10 mil on a revenue of 26 mil is NOT a winning business, no matter what “current reality” you’re speaking of.
Kinda makes you wonder how they managed to expand AND lose money at the same time, doesn’t it? It’s not as if they have to spend money on infrastructure like Amazon did at the early days…
Allow me to help you Catch Up.
ir.ominto.com/secfiling.cfm?filingID=1213900-17-1340&CIK=1097792
You are welcome.
Ah I remember that. Did pop up on my feed but figured I’d wait for the annual.
Anyway, you were saying?
Still losing millions of dollars… so can we stop pretending Dubli is a runaway success now?
I don’t know why I feel you are taking things personal?
Really? copying specific portions of the report to support your statement sounds pathetic to me.
Like it or not:
1- Review the report again and you’ll see Success.
2- Dubli making it to NASDAQ listing is nothing but Success.
My goal is not to argue with you Sir, but to share facts with people searching with Facts. Not opinions.
See you next filing when you have some Current Facts to discuss.
Yes, evidence that supports the fact that Dubli is still losing millions of dollars each year.
That’s not “success” in business. Nor does some irrelevant NASDAQ listing change the fact that Dubli’s business model is not profitable, nor has it been for some time.
You reckon they’ll lose two million again or double down for three this quarter?
the net is full of dubli affiliates complaining about dubli being a recruitment scam, not paying cashbacks, having poor customer support.
i think what Wael_2261 is crowing about is a sudden spike in business over the last quarter of 2016. alexa shows that around 87% of the interest in dubli during this period is from japan alone.
dubli’s alexa graph is already showing signs of plateauing, so unless dubli can re ignite recruitment in other countries, a small country like japan will not be able to sustain recruitment for long.
uh, inspite of a sudden sharp growth in japan, dubli still posted a 2.4 million loss in this quarter?
Another quarter, another multi-million disaster for Dubli:
$12 million by the end of the year?
ir.ominto.com/releasedetail.cfm?ReleaseID=1026708
And now Dubli/Ominto (which *did* get listed on NASDAQ somehow, contrary to my predictions) is in trouble for not filing its quarterly reports with the SEC.
Who would have ever guessed *that* would happen?
ih.advfn.com/p.php?pid=nmona&article=75515214
…And on Friday, Ominto announced that it was “voluntarily” delisting itself from the NASDAQ. (In other words, they’re “resigning” one step ahead of being fired).
The stated reason is that they have been unable to file their quarterly and annual financial reports in a timely manner.
Likely this is owing to their being unable to find an accountant willing to sign off on the financial fantasy that they’ve been trying to carry off.
Thanks for the heads up. Not looking good hey.
Maybe Wael_2261 (#14, #17 and #19) can stop by to explain to us how this is great for Dubli.