TSXV:RHT.H - Post by User
Comment by
lscfaon Aug 03, 2024 11:35pm
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Post# 36163689
RE:Money narrative Reliq update
RE:Money narrative Reliq update Crossley & co. have been proven to be idiots when it comes to forecasting so why believe the 40% ebitda margin now? Maxim says 32%.
PI Financial report June 2018
As it relates to margins, Management believes that they should be able to generate gross and Adj. EBITDA margins in excess of 80% once they hit full deployment with their existing customers (i.e., just over 60K patients; we expect to hit this level in mid-FY20).
The gross margin target is reasonable (we are forecasting gross margins in the mid-80% range in mid-FY20), assuming no hardware sales (which have gross margins well below iUGO Care licensing revenues) and minimal professional services revenue (also carry much lower gross margins).
However, we believe the Adj. EBITDA margin target is very aggressive. We are forecasting Adj. EBITDA margins in the low-50% range once RHT hits full deployment with their existing customers, compared to the guided +80% range.