RE:RE:RE:RE:BNN - recommended by David Barr todayNew direction from the company vs. a few years ago. New CEO brought in to shake things up a bit - he has started by first investing in their product and is spending about $1 million a quarter on R&D. Previously, the former management was just milking profits and had a really high EBITDA, but at the expense of growth.
Second, the company has really invested in their sales & marketing efforts. Part of the decrease in the EBITDA margin down to 30% is the result of hiring a lot of salesman who operate on quotas to get out there. This can 1-2 years of investment before you start to see results and if you look at their revenue backlog right now, it's at an all-time high. Previously, former management wasn't really trying to expand their market - their sales team was pretty weak so they were just sitting on their current customers.
That's why this new CRO that they just hired is great. They have the product - now they just need to get out there and sell it.