Post by
theinvestor22 on May 09, 2020 10:33pm
On balance...
Pre-COVID the outlook here was very positive, but it was a story that was unfolding at its own pace. Not too many eyeballs, but that didn't concern me. In fact, the big and growing pipe of recurring revenue deals, as well as bigger sized deal closings was quite encouraging. It was just a hold it and wait company with almost no churn in its 500+ customer base. Plus, of course, the impending introduction of HSPay.
COVID has had positive impacts - a new contact tracing app (based on one it already offers) that has garnered some customers and interest, eventual inevitable adds to the base offering pipe, and more eyeballs which has led to greater market price reaction. The downside is a short term delay in some (but not all) pipe closings as health units focus on COVID. Overall, COVID should help them but, once again, things will unfold over time.
HS is in a pretty good place, overall.