Q3: Accelerating Revenue and EBITDA Growth Blow my EstimatesRevenue Growth QoQ accelerating to 62% from 53% last quarter thanks to continued Self Serve growth and 140 Proof coming online in September. There are so many growth drivers going forward while the underlying business continues to grow on the Self Service side 88% YoY.
Firstly, the 140 Proof acquisition is looking like a slam dunk with 1.6M in September alone. Annualize that figure and you get 19M run rate business.
The Self-service Partner totals continues to impress growing 20% QoQ ad over 100% YoY. This gives Acuity the ammunition to continue grow its underlying business at a healthy clip on top of the 140 Proof acquisition for 2017 and beyond throw on top of that the European operation just underway, every dollar they bring is incremental revenue that did not exist last year which could be over a 1M business per Q by next quarter.
Looking at estimates the numbers are way too low in my opinion. Right now for 2016 Revenues estimates of 30.9M have to go up. With Self Service partners up over 100% YoY in Q4 revenue growth should remain strong. On the Managed Service Side if you get 4M from the 140 Proof deal on top of just flat core revenues you get a 35M revenue figure. Way above the current 30.9M estimate.
Still believe this is one the best secular longs in the small cap space which trades at a significant discount to its US peers and it if it ever gets taken out the takeout would have to be 3 – 4 SP on a takeout as of now.
LONG