Revenue growth of 24% to US$78.1m. Well and truly on track to achieve (and beat) long held 2020 target of US$200m in revenue.
Even better, EBITDA margin was 36.7%, ahead of 35% target.
Net profit up a massive 58%.
Name any of their key metrics -- they ALL moved in the right direction. Of particular note was China, which saw a 49% lift in revenue (there's a lot of potential remaining here too).
Of course, still debt free with US$58m in cash.
Company has provided an aspiration goal of US$500m in revenue by 2025 and believes the EBITDA margin could expand to 40%. That would represent top line growth of 20% per annum between FY18 and FY19.
On that goal, EBITDA would grow by ~24% per annum between FY18 and FY25
Valuation is the hard part here. Using trailing twelve months (TTM) figures and an US/AUD exchange rate of 72c:
P/S ~20, EV/EBITDA ~54, PE ~67
To put that in context, Alphabet (Google), which is also growing top line at ~20%, trades on a PE of ~26 and a PS of 5.6. Altium is a fantastic tech company, but then again so is Google, right?
I have zero concerns about the quality and strength of the business. My worry is that unless shares can mainatin very high multiples, shareholders could see pretty ordinary returns from here. ALU is a $4.3b company, and it's not easy to maintain high and sustainted levels of growth at this scale.
I have consistently under-estimated what the market will pay for this company. So be warned...
Investor presentation can be found here
AFR article here