On reflection, I'd say what is troubling many of the analysts right now, is the cash flow conversion question.
They reason that a company growing at this rate should be churning out cash. They just don't see why EBITDA and NPAT growth isn't stronger.
While there there is positive FCF at the operations level, at the bottom line, it's still negative. It's got them skittish.
Those analysts just don't get that to penetrate a vast and still growing TAM, in a winner take most market, you just have to reinvest revenue into R&D and S&M to stay ahead of the curve. Especially at this stage of the game.
So in this respect, Aconex management has their eye well and truly on the big picture, and only a handful of the analysts seem to be on page with them- yet. The rest of the bunch seem to just want to see the money, literally.
Fortunately, the new CFO, Paul Koppelman, knows his stuff, and will make sure that FY18 is the year of EBITDA and FCF expansion for Aconex, as well as properly finessing the growth drivers of R&D and S&M that will lead to the next level of expansion.
US$68bn California High Speed Rail (stage 1- $10bn)- on the Aconex platform.
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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.
