Hi DreadPirateRoberts
As the revenue grows, I would expect the Q on Q growth to slow but if they can keep it above 30% then profitability is possible.
The tables below show different growth rates, the first one has
Q on Q growth dropping from 50% to 30% over the next 6 quarters.
It will not be easy keeping the Q on Q growth rate above 30% as revenue grows. If they consistently get 30%
Q on Q growth, profitability will not be possible in CY19.
Revenue (growth rate 50% decreasing to 30%):
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
1 |
{colgroup} |
|
|
|
|
|
|
2 |
{col=86x@}{/col}{col=86x@}{/col}{col=86x@}{/col}{col=86x@}{/col}{col=104x@}{/col}{col=102x@}{/col}{col=92x@}{/col} |
|
|
|
|
|
|
3 |
{/colgroup} |
|
|
|
|
|
|
4 |
|
50% |
50% |
45% |
40% |
35% |
30% |
5 |
$761 |
$1,142 |
$1,712 |
$2,483 |
$3,476 |
$4,692 |
$6,100 |
Revenue (growth rate 30%):
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
1 |
{colgroup} |
|
|
|
|
|
|
2 |
{col=86x@}{/col}{col=86x@}{/col}{col=86x@}{/col}{col=86x@}{/col}{col=104x@}{/col}{col=102x@}{/col}{col=92x@}{/col} |
|
|
|
|
|
|
3 |
{/colgroup} |
|
|
|
|
|
|
4 |
|
30% |
30% |
30% |
30% |
30% |
30% |
5 |
$761 |
$989 |
$1,286 |
$1,672 |
$2,173 |
$2,826 |
$3,673 |
Revenue (growth rate 50%):
|
Column 1 |
Column 2 |
Column 3 |
Column 4 |
Column 5 |
Column 6 |
Column 7 |
1 |
{colgroup} |
|
|
|
|
|
|
2 |
{col=86x@}{/col}{col=86x@}{/col}{col=86x@}{/col}{col=86x@}{/col}{col=104x@}{/col}{col=102x@}{/col}{col=92x@}{/col} |
|
|
|
|
|
|
3 |
{/colgroup} |
|
|
|
|
|
|
4 |
$761 |
$1,142 |
$1,712 |
$2,568 |
$3,853 |
$5,779 |
$8,668 |