EPS of 57.5c beat estimates of 49c. Revenue of $119.37M beat estimates of $116.5M. EBITDA of $22.68M beat estimates by 7%. Revenue rose 18%. EPS more than quadrupled. Sales guidance was raised about $4M. Recurring revenue growth was solid, but was impacted by currency fluctuations. EBITDA rose 32%, and EBITDA margins were raised to 18% to 20% from 16% to 18%. Net cash is $240M. The quarter looks fine and the margin boost is positive. After very strong EPS growth this year, earnings are still expected to rise close to 50% in 2025.
Investors have been reacting well to companies making layoffs, of late, as we guess the thesis is 'better now than when we might have to later'. Many companies did overhire in the pandemic, and we would not view a comment 6% headcount reduction as overly concerning at KXS. We remain comfortable here as an accumulate or HOLD.