Hey Michael,
Sorry for the delay in responding to this one. Neither myself, nor Dan were familiar with this company at the outset. Worth noting, that the company is likely benefiting from the focus on AI - which to be honest is way overdone. So looking at a company that has already rebounded 50% of lows due to the euphoria around AI is not something to do in haste.
Furthermore, this company is not profitable and has only generated positive net income once (last year) in its life as a publicly traded company and is once again pointing to a loss in Fiscal 2024. On the bright side, the company has no debt, has $198M in cash on the balance sheet and has grown revenue at a 26% clip over the past three years - which is a very healthy growth rate. That said, management recently missed Fiscal 2023 revenue estimates and guided to Fiscal 2024 revenue which was below consensus estimates. This isn't all that surprising as many tech companies are pulling back on guidance in this macro economic environment. One need only look at Acuity Ads to see how despite a strong balance sheet, its share price remains depressed.
All this said, it is still expected to grow revenue by 15% this year, which is still a healthy growth rate. I'd like to see some margin improvement as the company's projected operating loss is expected to fall at a lower pace than revenue growth. Which means operating expenses are growing faster. All in all, it is an interesting company - even before all this AI craze, it seems CVO has been doing quite well. I'd still be cautious here because there is no doubt that it received a bump to do all the attention on AI. As mentioned, I was not familiar with CVO before this and to be honest, seems like a very relevant AI pureplay for those looking for exposure. I won't buy it here as I like to watch companies for a little longer and get more comfortable with them before buying, but I'll be adding it to my personal watchlist.
Mat