Post by
theinvestor22 on Mar 24, 2023 9:49am
Y-E and Q4
I thought the conference call was good. Here are my comments made last night over on the ceo.ca board:
Revenue is growing nicely. The SaaS component of revenue is particularly important to pay attention to, and that's growing nicely as well. Gross margin is excellent and improving, although I can't imagine it getting much higher. Expenses are still problematic. In terms of G&A, the company (in part) said this: "The increase quarter over quarter and year over year is driven by increased costs from acquisitions completed during the year and the time it takes for synergies and cost savings to be recognized, which can take longer for general and administrative expenses due to their nature." Even more noticeable is R&D expenses, which seem very high indeed. The company said this about that: "The increase is driven by increased costs from acquisitions completed in the year and the time it takes for synergies and cost savings to be recognized." Let's hope they can be successful at controlling those costs because it would make a BIG difference to the bottom line. In terms of profitability, I usually remove one-time items, in this case forex, business acqusiition/restructuring/integration expenses and change in fair value of contingent consideration. Doing that yields a pre-tax profit of $1,154k for Q4 vs $(41k) last year. While cash flow for Q4 was negative, that's not that important because cash flow for the whole year was around $6M, which was really quite good. So, overall, a good quarter and year. They've got a lot of progress yet to make, but I'm okay with things at this point, subject of course to ongoing expense control. The company seems to be on the right track.