The results are pretty good:
- Sales grew 14% QoQ and 45% YoY
- EBITDA grew 24% QoQ and 16% YoY. Reason for lower EBITDA growth is that company has recently increased its partnerships in US and LATAM as a result of which partnership fees has 2x QoQ and 6x YoY. Also, travelling costs have increased which is a good indicator for their potential SAAS product marketing in US.
- Segment-wise revenue growth and contribution is as below
| Sales | Q3 FY24 | Contribution (%) | Q2 FY 24 | Contribution (%) | QoQ | Q3 FY 23 | Contribution (%) | YoY | |
|---|---|---|---|---|---|---|---|---|---|
| Regulators | Collect | 12.52 | 46% | 10.8 | 45% | 15.82% | 6 | 30% | 120.42% |
| Filers | Create | 13.65 | 50% | 12.3 | 52% | 10.62% | 12.28 | 65% | 11.16% |
| GST, Analytics | Consume | 1.16 | 4% | 0.8 | 3% | 45.00% | 0.91 | 5% | 27.47% |
- With regards to segment-wise revenue, Collect has been the driver which is a low growth RFP-driven segment where company already holds 10% of world’s XBRL market share.
- However, keep in mind that the major potential growth driver, which is the Create segment is based on SAAS model where billing typically happens at the end of financial year. So, the 11% YoY growth in this segment is not a good indicator
- Need to keep a close eye on Create segment growth in Q4 results to assess the full growth trajectory.
- Also, the company has shared Segment results, anyone has any idea what they are? Operating profit?
Will publish a more detailed analysis of this company that has been resting in my drive for a while and I’m too busy to publish.
Discl: Invested
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