Hi there,
Seems like a decent company. I like the fact that it has a nice portfolio of children content that can be monetized in different ways. In fiscal 2020, revenue dropped YoY and through the first six months of Fiscal 2021, revenue has inched up by the low single digits. Cash flows are pretty strong and watch time is up 15% in the first half.
It is however, trading at all time high valuations and has a pretty high debt load. I think content creators are benefiting significantly from COVID as with nothing else to do, content is being consumed at a record pace. The question is, is this type of growth sustainable when everything opens back up. I'm not sure how much upside is left here given that the recent growth rates are well above average and as mentioned, not sure if they can be sustained post-pandemic.
Not a bad company - but i'd say fully valued around here.
Mat