Haivision figures are out at the close today (15th Jan 2025)
The thing to watch for in today's numbers is the EBITDA margin.
It was single digit for a while due to absorption of costs from the acquisitions and the IPO, etc.
For most of 2024 I think it would have been double digits.
Watch for Q4 - it could have crept north of 20%.
The company is sure it can maintain EBITDA margins in the 20s, and this would be the first proof point, providing confirmation of the investment thesis.
With gross margins of ~75%, operating leverage will gradually pull operating margins up. This should be a trend, not a one off.
I wouldn't be surprised if they eventually reach 30%+
Revenue growth with widening margins are a powerful combination for shareholder returns. Combine that with the share buy backs and multiple expansion and it can be explosive.
Haivision figures are out at the close today (15th Jan 2025)
The thing to watch for in today's numbers is the EBITDA margin.
It was single digit for a while due to absorption of costs from the acquisitions and the IPO, etc.
For most of 2024 I think it would have been double digits.
Watch for Q4 - it could have crept north of 20%.
The company is sure it can maintain EBITDA margins in the 20s, and this would be the first proof point, providing confirmation of the investment thesis.
With gross margins of ~75%, operating leverage will gradually pull operating margins up. This should be a trend, not a one off.
I wouldn't be surprised if they eventually reach 30%+
Revenue growth with widening margins are a powerful combination for shareholder returns. Combine that with the share buy backs and multiple expansion and it can be explosive.