This company is not a high growth company as management keeps pretending. It grew revenue at 7.2%.
The Board needs to set rule of 40 targets like most maturing tech business (Xero, Block etc). Revenue Growth % + EBITDA margin % = 40%.
The current (adjusted) EBITDA margin is 0.4%. So EVS is tracking at 7.2% + 0.4% = 7.6% vs rule of 40%.
Despite management spruiking the prospects they are simply not delivering revenue growth (40%+) that allows them to continue to be a loss making or creative accounting breakeven business.
Whilst 40% seems aspirational (and possibly delusional) a glide path increasing each 6 months and getting to 40% by 2027 would delight investors and potentially acquirers.
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