There are associated costs to grow a company...new hires, facilities, system upgrades etc...
...with this, the outstanding shares grew 18% to 9M from 7.6M a year ago...yet, as the revs grow, free cash flow will reduce the need to use shares to fund the growth.
Here's the upside...
Revenue YoY grew from $39.8M to $50.8M....28% growth
License revenue grew to $17.8M from $13.4M....33% growth
Maintenance revenue grew to $9.5M from $7.9M....20% growth
Service revenue grew to $23.5M from $18.5M....27% growth
Did you notice this..."Today, our new business pipeline and add-on requests from customers are stronger than ever, a fact demonstrated by the signing of more than $20 million in projects in the past two months alone," added Ghauri. "We are actively working on a number of similar game-changing deals for the company across the globe..." The only announced deal in the last 2 months was the $5M add-on with Toyota....so there's another $15M in new deals not announced....and then about $39M in total since the end of May.....yes, growing very quickly!!
While the cash position only grew $300k to $7.9M, the growth in Operating Income jumped from $7.3M to $11.7M....huge growth at 60% YoY.
Gross Margins improved from 54% to 55% YoY.....over the next 3 years NTWK expects this to reach 64%...yes if achieved, this will lead to large growth in earnings!
NTWK expects to grow revenues 15-25% over the next 5 years....hmmm, at my expected 20% YoY growth...
'14 has $61M, '15 has $73M, '16 has $88M......revs will grow rather quickly. Watch for NA revs to quickly grow, watch for new rev streams from the growing list of partnerships....hey, there's also the new mobile app that will supplement the Vroozi growth....
Disclosure: I'm long and I now have a lot of shares. IMO, I see a double over the next 2 years.....a very nice growth story and strong ROI for new NTWK investors!!
Correct, correct, and correct, through and through. Anyone working the numbers easily sees the value and growth proposition here. Very shortly we're going to see the analysts do the same and raise their price targets appropriately.
As solid as your numbers/analysis is, there will be a certain someone here who will come up with a stupid reply to attempt to punch holes in it. Ignore the queen. You've done a good job with this - no disputing it.
WHO died and left you boss with your certification status and identity unknown to all of us. You have a lot of nerve and cannon b---s with your implications and innuendos about others giving their thoughts and ideas about this company while examining NTWK's throughput.