Spending...and the company's bottom line. That's what's holding CAT back. I think everyone appreciates the quality product/s on offer and the exceptional client base they have (which IMO is why it ramped up so hard in the early days) but now I think the market is just sitting back and waiting to be wowed by the numbers, not the story.
The business isn't as simple as some other tech SaaS companies as it requires a high number of staff for research & product dev, sport scientists who work with the teams to help them analyse and make sense of the data. Forecast spend for R & D and staff costs for Q2 2018 is 15.8m , up 43% from Q2 Fy17.
So, taking my 'CAT hat' off for a second....if growth stays at current levels (20-30%) why would an investor JUMP in when spending is growing more rapidly than revenue?
Sorry to put a dampener on it, as i've mentioned previously I love the long term future of CAT and it's my biggest current holding..just tempering my short term expectations for the reasons mentioned above.
CAT Price at posting:
$1.67 Sentiment: Hold Disclosure: Held
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