Q: could I get your take on earnings? This is a company in transition, as the CEO states “Our Q3 performance further validates our successful transition to a SaaS-driven enterprise,”
Which metrics of the Q3 are most important to validate the above claims... how successful is the transition going?
Which metrics of the Q3 are most important to validate the above claims... how successful is the transition going?
5i Research Answer:
EPS of -3c missed estimates of +3.3c. Revenue of $16.56M missed estimates of $17.2M. EBITDA of $4.2M matched estimates. Revenue rose 2.1% but recurring revenue continues to grow at a faster rate (9%). Bookings rose 14%. Gross margin was 60%. Commentary for the future was quite positive. Despite the 'miss', we would still see it as worth holding. Very good growth is predicted for 2025. The keys here are margins and growth in recurring revenue. It is still early days but its partnerships are resulting in growing recurring revenue, and metrics are being improved or at least maintained. We would consider it so far, so good.