From another site this:
It seems the market weren’t too happy that the company’s Australia and New Zealand software as a service (SaaS) results rose by just 2% compared to the previous year, and EBITDA was up just 6%. This is the company’s core region, so growth here is important until its Asian business reaches a similar scale.
Expenses also increased at a faster pace than revenues leading to lower EBITDA margins, which may have spooked investors. But the increase in costs has been driven by the acquisition of King Content last year, cloud platform investment, Asian management team and additional highly skilled employees – all of which are likely to drive further growth in future.
iSentia expects to report revenues of between $155 and $158 million for the full 2016 financial year (FY16) – up more than 22% compared to last year – and EBITDA of between $50 and $53 million (up more than 18% compared to last year).
Growing revenues and earnings at double-digits is no mean feat, but that’s what investors are expecting from iSentia. I suspect many had expected higher growth in the bottom line (compared to revenues) rather than lower growth given the company’s leverage – hence today’s selloff, but that might be an opportunity.
ISD Price at posting:
$3.51 Sentiment: None Disclosure: Not Held
