RE:Continued very strong growth #'sVery strong results from a small company that now has been battle-tested and proven resilient in an enconomic downturn. 3 accretive acquisitions and an equity raise with strong stable backers through a difficult year.
I would say that it only gets stronger from here:
- GGgolf probably contributes significantly in the 2nd and 3rd quarters due to seasonality.
- Guidance was stated that they're aiming for 3 more acquisitions this year. 1 within a month's time
- With where cash and warrants are placed, I don't see any further financing required to complete 3 more acquisitions.
- Acquisitions will be at least double in size of GGgolf. Steven L has stated such in past commentary
- Data. With selling data, it's a scaling game. The larger the client pool, the more data the company gathers which creates more salable data. Data is essentially free. And selling it, creates recurring revenue with exceptionally high gross margins.
I would just like to point out that they do what Dye and Durham does with those they acquire. They strip out costs and drive it to be more profitable, ultimately lowering the bought multiple of the acquired company.
Also some other companies that started out just buying 3 companies a year - Constellation Software and Converge Tech. These companies guided to acquiring 3 companies a year, then one year, the deals didn't stop at 3. CSU acquired 14 and Converge acquired 6 companies in one year. In those years, the revenue and profitability, for those companies broke, out to all time highs along with their share prices.
I'm expecting the same for Ackroo.