Wolfish details ....-->
A 97% increase in GP dollars on 71% growth is tremendous start here.
Gross profit rate on the year is now 50.9%.
They also achieved some nice conversion within their operating expenses, only growing by 45% on 71% top line growth.
It's even more impressive given that nearly half of the increases in their expenditures are actually related to foreign exchange, so their actual cash burning expenditures are closer to 25% more than a year ago on 71% more business.
-->As I've said before, strong revenue growth, strong margin growth and converting on expenses is the P&L trifecta.
All of these numbers translate to a much improved bottom line, where it matters the most.
$693k in operating income for the quarter against a loss of $156k, bringing their YTD operating income for the year to $970k, against an operating loss of $550k through their first two quarters. Overall:
They really knocked this quarter out of the park -- >in almost every metric.
The quarterly cash burn sticks out like a sore thumb but I think this can be explained away due to the accounts payable timing differences which I explained earlier and will balance out in future quarters.
-->Everything else is stellar.
Now what about the current valuation of a $44M MC.
If we extrapolate the quarter, we're looking at a 1.5 MC/Sales ratio, EBITDA of 12%, and an EV/EBITDA ratio of around 12 and shrinking.
There's some real upside here with continued results such as this.
-->Four stars