Strike 1: Growth is awfully lumpy – was this perhaps just a good Q?. 37% in 2Q19, 10% in 1Q19, 22% in 4Q18, 10% in 3Q18, 8% in 2Q18.
Certainly would need more information. Any recent acquisitions? Has anything else changed? Why would they start growing faster consistently?
Strike 2: Gross Margin doesn’t look impressive. “FI Share and other third-party costs” is 27.6m on 48.7m total revenue this quarter. So if that can be taken as COGS, that’s a 43% Gross Margin. Not good.
Strike 3: For me, if there are any question marks at all, I’m pretty much out on a sub-$1b company. At their size, I need 60%+ growth consistently and SaaS-like margins.
Bear