Organic growth?I don't really follow junior stocks, but I like the HR space. When I found out about this one I checked it out and a colleague pointed me to Stockhouse for discussions, but given the paucity of comments, I think she may be wrong. In any case:
On their last press release they made two points that are seemingly contradictory.
- Organic Growth of 7% for this quarter more than double the growth rate achieved by industry peers (1.8%)
- Record revenue of $5.5 million was 89.1% higher than $2.9 million in Q1-2020 with $3.1 million contributed from acquisitions made in 2020.
If the revenue for the quarter has $3.1 million from acquisitions, then that means non-acquired revenue was $2.4 million, which is a marked decline from the prior year of $2.9 million.
The acquisitions only started rolling after Q1, so there was no "acquired" revenue in the prior year.
So if their "non-acquired" revenue (ie. organic) was lower, how can they have organic growth?
The only that that assertion works is to look at the numbers on a pro-forma basis where the prior year "as-acquired" comps are presented. But they aren't!
At best, this is misleading. At worst, it is wrong.
Anyone know what is happening here?