TSXV:TKX.H - Post by User
Post by
TallerCraigon Apr 24, 2018 10:39am
280 Views
Post# 27931758
Q2: Recurring Rev Growth 79% w GM Exploding Higher to 67%...
Q2: Recurring Rev Growth 79% w GM Exploding Higher to 67%...Has to be one of the best Qs I have seen in this reporting period. At least I think so, hence I am back in the name at 0.31/share on the open today. Could be right or wrong shorter term but longer term I think this is the name and sector to be in. Lets recap;
Revenue
Total Revenue of 1.82M up 37% YoY more importantly is Revenue mix and growth in Recurring Revenue of 537K up 79% YoY and accelerating QoQ growth of 24%. The growth in the recurring model is what is going to drive cashflow and earnings of the business and should be associated with a higher multiple put on the business and a resulting higher share price!
I will also point out that deferred revenue of 1.09M up 191% form year end. Business pipeline remains strong!
Profitability
I would just point out that all this growth has been delivered on expanding margin up tp 67% essentially doubling YoY and up by over 60% QoQ. All this growth while keeping OpEx in line down QoQ, which will result in any incremental revenue growth from this point forward is going to drop right down the income statement.
Amazing that they were EBITDA positive. With cash of 672k still on the balance sheet they have stemmed off the cash burn. I think they should look for a credit facility given the growing recurring revenue the interest terms would be quite reasonable or a strategic investment from DENSO would also work.
Between TKX.V and TRAK.V I think I got Enterprise IoT covered.
LONG Looking to get LONGER once capital structure gets firmed up.