RE: Darktrace v Kape Technologies8 Jan 2023 17:35
“ A loss of 140 M became a profit 5 M in one year too. “
——————————
Two mild points Squadra (hope you don't mind) -
First, I go along with what you’ve posted, but not keen on you posting the pre-tax profit as
- ‘Profit’.
Net Profit L/year was actually $1.46m
That $5.31m you label ‘profit’ is before taxes were deducted. That’s why I’m not keen on media analysts' fondness for pre-tax profit. A lot gets whisked away by the tax man. The company never gets to keep the full amount - only the Net Profit.
And from our PI’s interests/perspective, I believe it’s in our interests to focus more on the Net Profit - the folding stuff the company actually gets to keep.
For shorthand on forums, I concentrate on what comes in the front door - Revenue
- and after everybody with their hand out has been paid off, what is actually left at the back door
- Net Profit (no more deductions).
The reason I highlight that, is that the guidance for this current year is for a very commendable Net Profit of $28.1m and the increase from $1.46 up to $28.1m is staggering. (Wait until you see the 2024 guidance in the next post! :)
$5m pre-tax profit kind of steals the thunder of the achievement away from the company when compared to the current year forecasts. I don’t possess the pre-tax profit for the current year’s guidance, but it will of course be considerably higher than the Net Profit. So if your preference is for pre-tax metrics you’d have to use all pre-tax metrics throughout for comparison purposes.
The second point is the expectation for revenue of over $1b.
I agree that’s a probability on the horizon but not in 2 or 3 years but a little longer. However, I will post my findings in a separate post to this, to keep this post becoming unwieldy, so others can see how both you and I believe that $1b Revenue is achievable in the v near-coming years should next week’s pre-trading update broadly confirm all is still on track to that end.
Oh, seperately to the above, that historic out of date 1000 P/E ratio that the deramper focused on?
It’s currently down to 91.7 - if next week’s update confirms all on track
- (2024 will bring the P/E ratio multiple down even further to P/E 53 !
But only if the update confirms market guidance remains in line with guidance.
Next post (later this evening) on some balance sheet figures to share on the journey so far - and to come, financially - in case others are interested too, ahead of the pre-trading update later this week.
Sign In
Follow the stocks
