If VET keeps growing at 32% for any further periods, then it'll quickly become a higher proportion of revenue (32% vs 13% total including VET confirms it). I remember the ebooks are proportionally higher revenue, and lower margin. VET is the opposite in terms of margin, and the revenue is growing well, catching up!
Will VET keep up that trend? 90% gross margin, and quick growth rate sounds good.
I guess there are quite a few ways to grow that business. More schools, more courses, more up-sells/cross-sells.
It's good that you/we are confident, since I'm locked in. Big position, and minimal liquidity to sell. My options: wait for takeover, wait for dividends, wait for the market cap to rise and new buyers to increase liquidity, reduce position slowly over months/years, or hold. I doubt I'll be buying, since I'm overweight.
I wonder what 90% gross margin means exactly (in regards to the expenses). New VET revenue requiring minimal increased expenses? Possibly that is how they had 13% revenue growth with only 1% expenses growth lately (VET out-growing the other businesses, with minimal incremental costs)? A change of trajectory compared to the prior acquisitions, when we were always adding more staff costs?
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