I think the biggest issue with this company is they really don't do enough R&D for a company with their valuation. Going off LinkedIn data they only have 124 people in Engineering and product management, whilst business development, sales, and marketing have 88 people. Many engineering staff will be resolving issues in the software, rather than focussed on roadmap. This skew of people seems bizarre, and the two areas of their business growing the most proportionally is their accounting function (10 people) and HR (6 people). I don't see how you build a roadmap quickly with this amount of people, especially with bug fixes. Their expenses seem predominantly in sales based activities which is great, but they also need significant focus of building out their product. You would also expect with this significant expenditure on sales that sales growth would be more significant than it is.
They have also been decreasing staff numbers. This is a worry, especially with the acquisitions ( Although efficiencies come from consolidating common functions) The median employee tenure is showing churn.
Of course not all people will be on LinkedIn, but most Tech staff employees are
BTH Price at posting:
27.5¢ Sentiment: Sell Disclosure: Held
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