Some of the negativity on this forum is, as always, quite amazing. But I’m a numbers guy.
This company has grown less than I had hoped in a very positive environment for internet security companies. And the recent margin reduction in a skittish stockmarket, due to investments in the business (SOC) did not help. And the share price falls have made it very hard to load up. I have however recently re-bought this stock.
They were operating EBITDA positive last year. They had 5m statutory EBITDA in the first half this year and have repeatedly said – including recently - that they make about 75% of their EBITDA in H2. The key number at the end of the last qtr was 6.6m in unbilled revenue, which was NOT included in the first 3 quarters revenue or EBITDA, but will be in Q4 (the 6.6m unbilled was also up by 2m on Q2) . So their organic revenue and EBITDA growth rate is still healthy. Their recent statements have confirmed an expectation of at least 19m FY23 EBITDA, and they have NOT (yet) downgraded this. And given those seasonals will not only be operating EBITDA positive this year, but may even make a small profit. At these price levels, with a mkt cap about 70m and statutory revenue this year around 150m, I’m happy that the upside risk is more than the downside.
