Q: Hi Peter & 5i,
May I get get your thoughts on the 1st Quarter of F25?
Are you concerned about the small sales increase compared to Q1 of F24?
Are you concerned about decreases in profit (.8M versus 1.2M) and EBITDA (2.6M versus 3.2M)?
Thank you for your thoughts and great service.
May I get get your thoughts on the 1st Quarter of F25?
Are you concerned about the small sales increase compared to Q1 of F24?
Are you concerned about decreases in profit (.8M versus 1.2M) and EBITDA (2.6M versus 3.2M)?
Thank you for your thoughts and great service.
5i Research Answer:
EPS of 5c missed estimates of 9.3c; sales of $42.2M missed estimates of $44.6M. We do not like the 'miss', but if we break down the sales numbers, SaaS revenue grew 33% and bookings rose 57%. The company's quality of revenue is improving even though total sales growth was muted. It also is continuing to buy back shares. We would like to see more profitabilty and this needs to be watched. Right now, we, and other investors, are looking forward. The stock is doing reasonably well. But these trends do need to be watched.