Great Q: Another Revenue and EPS BEAT with Dividend Increase Adjusted EPS Beat of 0.10 vs 0.07 estimate on strong revenue growth of 23.4%. This is quickly turning into one of the best Dividend growth stories with another dividend increase of 14% to 0.04.
The growing of the international expansion continues as this has limited EBITDA margin in the short run but in the long run it is such a net positive given the companies’ business model and the nature of recurring revenue model which represents over 85% of revenue. Even given this increased international spend they continue to grow EBITDA.
This high ROE story with strong EBITDA and freecahflow growth has a glide path for years of growing EBITDA and cashflow which they can use for acquisition to tuck into the existing platform and continue the dividend increases.
Still believe it should trade closer to 9-10 SP given its strong growth platform and stability in earnings and cashflow while they continue to grow the topline at a pace over 20%.