as i alluded earlier, the probability to me is that risk lies in the twin unseens of possible margin compression and distribution costs
as i said when lifx deal was announced - the word on the deal was that margin compression was the big risk behind why the sellers couldnt fund a new round via private equity and so did the backdoor listing via BUD
so what you are seeing now will be the race to max out distribution - to try to make the most of LIFx brand rep - before price competition erodes net earnings margins
but because its 3rd party reselling and a non core style of product offering - the question will be what they charge to sell it - and so what net margins are - not gross revenues.
because of this id be very cautious of relying on old gross revenue to ebitda ratio.
it might be those are still intact... but there's just a history using gross numbers that mischaracterise the net proceeds - so until you see it in the quarterly cashflows...
that means revenue growth - depending on whether BUD books reseller costs or they are booked as corporate cost - may not be a good indicator
not unlike when they said that thing back around March - bit misty to me now - but think i pointed out theyd said they were going to be cashflow positive as group and instead it was just Lifx breakeven or something similar.
cant be bothered to go back but im sure
@retiredyoung knows what im referring to
my point: ignore revenue growth for now. you'll need to decompose all the figures to work out what actual profitability is.
work from the inside out - not the other way. otherwise they may well diddle you as they have prev.
