Agree with @madamswer. I posted my notes from the quarterly in...

Agree with @madamswer.

I posted my notes from the quarterly in my substack.

Cloud backup provider Dropsuited had yet another mic drop moment when they released their results.

They often lead with the AUD figures, but I prefer the USD ones to remove the FX movement.

On that basis, top line results were:

ARR in USD at $18.82. (ARR in AUD at $28.2M which will be on chart)

Strong revenue growth at 50%.

4th consecutive positive quarter of positive cashflow, with cash margins at 4.5%. This is down QoQ, with seasonality mentioned as the reasoning. We can see from 2 previous years this being the case.

New direct partners onboarded: 33

Cash pile remains healthy at $22.69M

As I had mentioned in my coverage of them in the previous quarter (link here), growth is declining. That’s because they remain consistent in how much ARR they’re adding per quarter, while their baseline continues to expand, you can see what I mean here:

Q4

Q1

Q2

Q3

June 2022

September 2022

December 2022

March 2023

ARR ($USD M)

14.14

15.63

17.15

18.82

ARR Added ($USD M)

1.63

1.49

1.52

1.67

Growth

68.00%

63.00%

58.00%

50.00%

Should one be worried about growth heading south?

Certainly, it needs to be monitored. I consider these 3 points moving forward:

Growth north of 50% is incredible to begin with, and can hardly be maintained for years without some fluctuations about where and how this growth comes about.

They’ve recently geared up at the leadership level in preparation for the next phase of growth (SVP for Marketing + Sales last quarter, CPO this quarter)

Recent added spend in marketing is likely still in pipeline and not showing in the numbers (December quarterly showcases marketing spend up 80% QoQ)

New Quickbooks product is fresh off the shelves, and its impact will only be visible in the next few quarters.

This is my opinion alone, and I’m keen to see what new milestones they can accomplish this year.