Like clockwork for Dropsuite. They offer a decent view on all important metrics every quarter, so nothing came as a surprise, perhaps explaining why the stock was muted. 

• Growing revenues at 35% (ARR growth is preferred metric) ✅
• Growing Profits ✅ 
• Not diluting ✅

EV is currently hovering around $160 at share price around 0.27$, which means 4.6x ARR. For a company sustaining growth above 30%, that seems very fair. If the growth continues at this pace next year they should be approaching the $50M ARR milestone, likely landing short on about $44M. 

Outlook was essentially “business as usual” with continued investment in growth but keeping cashflow neutral. Thesis on track.

Keen to hear from any other members that follow these guys if I'm missing anything interesting.  

Good comments from @Chagsy and @Hogajo already on their quarterly results.

Am about to post about them in my newsletter this week, won't rehash the good results. Will only share the last part on what I'm looking for in Dropsuite moving forward:

• How quickly new starters can ramp. They’ve announced they were expanding the team (“Continued investment in team expansion (Wages spend +15% QoQ, Marketing spend +80% QoQ), contributed to QoQ operating cashflow reduction.”) I’m pleased to see they are doing this, because they have the funds to fuel the growth, but also because they will need it to maintain this high growth rate. With their partner based go-to-market motion, I suspect it will take 2 quarters before we see results from this bigger team. 

• What they do with the pile of cash. Dropsuite have been open about proactively seeking acquisitions (“Advancing high conviction M&A opportunities which leverage existing internal growth and take advantage of strong market tailwinds around data protection..”). We’ve found expenses for due diligence in the previous quarter’s 4C. I’m curious to see if an acquisition does materialise., and what that would look like Personally, I’m a bigger fan of them re-investing in growth.

Disc: I hold Dropsuite