Billion Dollar Revenue Company? How Long?

Since 2014, (and according to 2017 projections) Aconex has been virtually doubling its revenue every 2 years (see chart below). If this rate continues, ACX will be a billion dollar revenue co within 6.5 years (2023).

FY 14 $66 M-  FY 16 $123 M. FY 15 $82 M - FY 17 $160-165 M(projected). Continue this trend and you end up with $1.3 B annual revenue by 2023. These figures of course, include the Conject acquisition. But that is now part of the mix.

With this possibility in mind, should ACX let gross margins flow through to NPAT, or should they focus on driving top line growth while maintaining EBITDA growth? No brainer really.

It's not a question of if Aconex will achieve the billion dollar revenue level, it's more like when.

Pity the market seems to be myopically focusing on short term statutory NPAT atm.


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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.