The profit will come from the scale so putting $100M rev target is a great carrot to dangle. As their variable cost ratio to revenue is estimated to stay the same at 34% at that $100m rev figure. But their fixed costs currently eat up 89% of the profit margin..... if they hit $100m the fixed cost ratio comes right back to a 33% margin (which even then feels a little bit high). There is a long way to go but the foundations are now in place for growth to take off...... this next 6 months will confirm if their strategy is bearing fruit.
The profit will come from the scale so putting $100M rev target...
Add to My Watchlist
What is My Watchlist?
