7 Comments

revenue growing only with acquisitions, never profitable, what's the catalyst?

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Not only, but historically through M&A indeed. I'm a bit confused about your comment on profitability, as CentralNic is a very profitable business. In fact, I believe its cash-generative nature to be the main reason why it has survived such aggressive M&A activities in the past.

Lastly, I'm not saying there's a catalyst. These studies do not represent any sort of financial advice. Please do your own diligence before investing in any financial asset.

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What I mean is that they generate lots of cash but constantly need to reinvest it, fcf looks small but maybe I need to dig deeper. Thanks for your answer and your articles

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Nothing said about margins?

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Had to squeeze in and skip some info. I will go through that in the second part. Thanks for the nice point.

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Yea good point. What's up with their margins

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Very well written. I was only reading their annual report yesterday as I have a mid sized position. I found it very interesting that the customer concentration says more than 50 percent of revenue comes from a single customer (I assume it is Google). The question I have been thinking about since yesterday is whether google can do something to completely disintermediate the online marketing segment? The priorities therefore say to include bing and Yahoo as customers but customer concentration is likely to stay.

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