"1. Increased employee costs: Sure, it could be an investment. Or it could be an acute shortage in the IT labour market which is forcing DTL to pay higher wages to keep talent. We can't say either way for sure."
Well, the company's management confirmed on the call that it intentionally signed off on meaningful cost investment, made ahead of the Sales curve.
So I think we can say for sure.
Of course, they could be lying. But based on a long track record of being trustworthy and prudent, I think I'll take what they say at face value. Doing so has served shareholders incredibly well.
"I think this just needs to be done to stay market leaders (as DTL and DDR both are)."
And if they are true market leaders they will recoup the up-front expenses they are incurring. As they have done for the two decades.
2. AI: I'm sure DTL sales will increase overtime because of AI and other things but this has nothing to do with the current report."
Say what, now?
The current report reflects the effects of the additional resources taken on board to service the increase Revenue opportunity they envisage. Something which, as discussed above, was confirmed by DTL's CEO (both incumbent and incoming)
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DTL Price at posting:
$8.29 Sentiment: None Disclosure: Held
(20min delay)