Q: Hi gang, first thanks for answering earlier question on Hammond.
My question is if you had a chance to listen on CC this am, and if there were and questions on this SBC impact? It really seams to add volatility to the stock, good results, great share price appreciation, then we get hit with this negative SBC. It looks like they are investing in growth, 20 million to upgrade facilities, but this will come with bigger employee growth.
Thx
My question is if you had a chance to listen on CC this am, and if there were and questions on this SBC impact? It really seams to add volatility to the stock, good results, great share price appreciation, then we get hit with this negative SBC. It looks like they are investing in growth, 20 million to upgrade facilities, but this will come with bigger employee growth.
Thx
5i Research Answer:
There were no analyst questions on the SBC impact, but management noted in the financial piece of the call that SBC in the quarter was $6.9M compared to $2.7M for the same quarter in the prior year. Looking at the Adjusted EBITDA number, which excludes the impact from SBC, this was the highest quarterly adjusted EBITDA figure in 2024.
It is an interesting dilemma, as higher SBC pulls EPS down, which has historically negatively impacted its stock price, which then pulls SBC down for the future quarter, thus increasing EPS, which positively impacts the stock price. Eventually, we think this volatility is reduced, as investors begin to adjust and react to the swings in SBC.