RE:RE:RE:RE:RE:RE:RE:RE:Q2: Record Partner Growth w US Rev up 341% & EMEA up 130%!!!BearCat2,
I think the quarter was great. They have continued to execute - top line growth is strong, EBITDA is solid. They are integrating the new companies and I expect that this will continue. I would expect to see continued cross-selling growth as well as cost controls.
I think some people are concerned about the cash going down as much as it did. I don't think it is a material issue as it was expected. The noise around the purchase, the cash and the integration provides a great entry point to buy into this company.
Tech is not well understood in Canada - and any noise around the numbers scares the market more than any sector. So I see this as a great entry point.
I think the market is anticipating that AT will need to raise money prior to making an acquisition. I think the market is misreading this.
There are also some people who seem to misunderstand the balance sheet around the AP.
To refresh - A/P goes up as revenues increases. A/R also goes up as revenues increase. The ratio of these two is important. In the case of AT the A/R increases at a much faster pace than A/P - which showcases the high margin of their business.
All in all - I am very happy with the quarter and believe the market is full of people who do not understand what they are looking at with AT.
My belief is that the share price will be materially higher within the next few months. All of their indicators point to higher revenue growth in the coming quarters - both from seasonality but also from cross-selling opportunities and normal organic growth.
I hope that helps.
Best regards,
Colin Fisher