Q: Hi,
Comments on Q4 and FY please. Any noteworthy positives/negatives you see in future commentary?
I saw that the president is leaving in May 2025...any concerns?
Still one of your small cap favs?
Comments on Q4 and FY please. Any noteworthy positives/negatives you see in future commentary?
I saw that the president is leaving in May 2025...any concerns?
Still one of your small cap favs?
5i Research Answer:
EPS of $0.509 beat estimates of $0.109 and revenues of $77.49M beat estimates of $76.61M. Sales grew 12% year-over-year and full-year revenue grew 13%. Its Q4 subscription and support revenue grew 11% year-over-year, and its cash from operations grew from US$12.2M in the prior year to US$27.9M. Management guided for FY2026 revenue growth of around 12% and Adjusted EBITDA margins of 13%. While the President, Stephen Laster is leading in May, the CEO, John Baker will still be running the operations. Despite its one-day decline, on what is an otherwise ugly day, we continue to like the company's execution and growth rates, and it now trades at 16.5X forward earnings. We would be comfortable holding here.