20 TTM top revenue growers

I’ve prepared a list of the some of the top 20 TTM (trailing 12 months) revenue growers compared to the previous TTM. I plan to follow up later with comments, but thought it might be useful to post the list now.

Many are the “usual suspects” often commented on here on this board so I won’t get into those. Also, some are primarily from and for emerging growth countries (China or Brazil). I’ve marked those with a ** and won’t get into those, either.

Finally, the list may have some omissions. Try as I might, Zoom did not show up on my screener even though another recent IPO, Crowdstrike, did. Even so, Zoom has often been discussed on this board. Excluded from the list are biotechnolgy and pharmaceuticals

Symbol	Description	Price/Sales (TTM)	Sector	   % Growth Rate 

SSNC	SS&C Technologies 	3.55	Information Technology	144.83%		
SE	Sea Ltd	               14.06	Communication Services	115.40%		
CRWD	Crowdstrike 	       54.63	Information Technology	110.37%		
HUYA**	HUYA Inc	        6.99	Communication Services	107.31%		
AYX	Alteryx Inc	       25.61	Information Technology	86.95%		
WORK	Slack Technologies     39.57	Information Technology	75.64%		
TWLO	Twilio Inc	       25.64	Information Technology	71.09%		
GDS**	GDS Holdings           11.91	Information Technology	70.74%		
ESTC	Elastic NV	       22.38	Information Technology	69.85%		
MDB	Mongodb Inc	       28.32	Information Technology	67.69%		
ZS	Zscaler Inc	       38.82	Information Technology	60.02%		
BILI**	Bilibili Inc	        7.97	Communication Services	59.13%		
TME**	Tencent Music Ent Grp	8.46	Communication Services	58.60%		
PINS	Pinterest Inc	       17.54	Communication Services	58.40%		
PAGS**	PagSeguro Digital      11.03	Information Technology	55.12%		
KMPR	Kemper Corp	        1.39	Financials	        54.16%		
OKTA	Okta Inc	       34.67	Information Technology	53.16%		
TTD	Trade Desk Inc	       20.95	Information Technology	50.53%		
TTWO	Take-Two Interactive 	4.85	Communication Services	48.83%
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Magellan,

I know you’re new, but we’ve decided in the past that screeners are off topic. If you run a screen, don’t just give us the data dump, but tell us a little bit about some of the companies found that you like. This will take more time, but is a lot more valuable.

Also note that just revenue growth doesn’t really tell us anything. A company might have a gross margin of 5%…or even a negative gross margin. Who cares if they’re growing at 200% – that just means they’re more in the negative. Or perhaps growth is up 100% down last year but was down 75% last year – that’s a cyclical or turn-around business, specifically off topic for this board: https://discussion.fool.com/monday-morning-rules-of-the-board-34…

I wish screeners were more helpful, but they’re fraught with problems. The main thing is that you can’t trust the data. It’s almost always pulled by a computer and often wrong. For instance, GDS doesn’t seem to be growing revenue – it seems to be falling. That’s why Saul said to always get numbers directly from the company: https://discussion.fool.com/i-got-those-zscaler-numbers-off-macr…

I appreciate your enthusiasm, and I hope you’ll continue to add to the discussion, but the board has gotten so popular that we have to limit the discussions on things that are off topic.

Again, please: run your screen if you find it helpful! Just use it as the beginning of your analysis. We want to hear about potential investments that you think have promise – not just whatever the screener spits out.

Thanks,
Bear
Assistant Board Manager

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Thanks for the comments, Bear, and I’ll take them to heart. As I said in my initial post, it is just the beginning as I intend to follow up on some of the companies listed. I just thought it might be helpful for others to see if now because it will take some time to go through the list.

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I’m just a lowly board layperson, but I appreciate this screen in particular as it focuses on revenue growth. Revenue growth has grown to be the top consideration for this board over the past few years since I have been visiting. Additionally, the table included P/S ratios, also a very common topic on the board and very relevant, though it can sometimes dive into off-topic-ness.

All that said, anytime that a listing like this gets posted, it is a great idea to validate the numbers via one’s own preferred reliable data sources to ensure the numbers are accurate. That said, from a glance, those P/S ratios look to be about right (and of course, those change daily along with share price fluctuations, so ballparks are more valuable than attempting to ensure that the decimal place value is spot on for any given share price).

I liked this screen, and think it fit in with the board’s favorite topic - HIGH REVENUE GROWTH, aka OOMPH factor.

To Magellan, I would recommend delving in a bit to figure out how Crowdstrike ended up being included but Zoom did not, as Zoom is clearly belonging on that list with its >100% y-o-y growth. Figuring that out could give you some further confidence in use of your data sources. Personally, I am rather annoyed that the TDAmeritrade web interface often lists YTD data when I try to look at quarterly data rather than annual, but I don’t yet pay specifically for any data sources as I am a mere “hobby-ist” investor.

-volfan84
long about 5 of those companies listed amongst my top-12 holdings (TTD, MDB, AYX, ZS, and ESTC…also ZM)

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Bear, I wasn’t going to cover GDS since it’s a Chinese company, but I wanted to correct an impression you may have created. You said "GDS doesn’t seem to be growing revenue – it seems to be falling. "

This from the companies website (http://investors.gds-services.com/news-releases/news-release…)

“Adjusted EBITDA (non-GAAP) increased by 111.4% Y-o-Y to RMB383.2 million (US$57.1 million) in the first quarter of 2019 (1Q2018: RMB181.3 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.”

If I’m wrong, please let me know what source you are using.

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Bear, as I said, frankly I am not interested in GDS since it’s a Chinese company, but for those who might be I think they should have the correct information.

Just as I said in my original post , their revenues increased over 70% YOY. My source is SEC Edgar https://www.sec.gov/cgi-bin/viewer?action=view&cik=15261…

            
                   2018             2017            2016   
Net revenue	¥ 2,792,077	¥ 1,616,166	¥ 1,055,960

This actually works out to 72.7% YOY revenue increase so I was a little off; but they’re simply notfalling” revenues.

Also, watch out on screens because, for example, Alteryx shows a very high growth rate that is due to 605 to 606 changes and is not accurate.

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Hey Guys, As Bear pointed out, screens are off topic. We’ve had seven posts on this OT thread but as you see, most of them are not about analyzing individual stocks but are about the mistakes or non-mistakes of the screen’s robo-computer. LET’S END THIS OFF-TOPIC THREAD NOW, so I DON’T have to DELETE it.

In the future, if you have a screen that you think is useful, instead of posting a list of the screen results, pick one or to companies off the list that look good to you and tell us about them in more detail so you can start an actual discussion.

Thanks,

Saul

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This will be a shallow dive into one of the stocks I listed. I am going to start working down the list with SSNC. Frankly, I had not heard of it before screening for it tonight. Its business summary is:
“The Company is a provider of software products and software-enabled services that allow financial services providers to automate complex business processes and manage their information processing requirements. The Company’s portfolio of software products and software-enabled services allows its clients to automate and integrate front-office functions, such as trading and modeling middle-office functions, such as portfolio management and reporting, and back-office functions, such as accounting, performance measurement, reconciliation, reporting, processing and clearing.”

How much of a moat this creates is unclear to me.

I’ll explain below why the revenues increased so dramatically this year, but first some of the basics. The company has been around since 2010, has been consistently profitable and pays a tiny dividend. Its long term chart looks good. 5 years ago the stock price was at $22 and tripled to $67.73 on April 30th of this year before falling to its present price of $58.10. The peak represents about a 25% CAGR rise in the stock price from July 2014. The stock started falling to its present price on May 1 because the company lowered its 2019 guidance

As to the huge increase in revenues, that appears to be mostly from 3 acquisitions, which also caused a large increase in debt from just over $2B last year to now over $8B. % net margins are up and down: 17.1 4.3 8.8 19.6 3.0 for 2014 through 2018.

Although this looks like a solid company and may experience good results from its acquisitions, I’m disappointed in its recent mediocre profit margins, and up and down % revenue increases. The same can be said for its net income from 2011.

It might be a company to watch to see how its acquisitions work out, but I see no compelling reason to invest now. For more info about the company, see TMF public article at https://www.fool.com/investing/2019/06/06/why-ssc-technologi…

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Saul, Bear: It was never my intention to throw up a blank list and leave it at that. I already started analyzing stocks on that list (see above - SSNC). The list does have some validity as many of the stocks often discuss on this post are mentioned. My intent was to try to find some others not discussed here so if it’s all right with you guys, I will continue in that quest. Say the word (again) and I won’t continue.

Thanks to you both for all you have created on this board. It was my hope I contribute a fraction of what you two have; but if you prefer, I’ll leave off.

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I can tell you about one of the products that ssnc sells. Skyline Property Management software. I have been a user of it since 1998.

I really am not impressed by it. It is not cheap, but can do so much less than any of microsofts products.

The technical support is not good, and when they come out with updated versions, while it might look different, I have never found new things it can do.

Unless theie other products are better, I am surprised that it is a top revenue grower. It is medicocre software at best.

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Mark, good to have the insight of your actual use of one product. And I really think the revenue gain was mostly due to acquisitions. As I said, I made shallow dive into this company because I didn’t find a lot of other compelling incentives.

Mark, good to have the insight of your actual use of one product. And I really think the revenue gain was mostly due to acquisitions. As I said, I made shallow dive into this company because I didn’t find a lot of other compelling incentives.

They could have 20 great products, but the one I use is mediocre at best. I think the larger, richer real estate companies use timberline, or Yardi. I would not give up on the company because one of their products is poor. The closest thing I could compare it to, would be to say it is somewhere between quicken, and quickbooks in terms of what it can do.

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Magellan, I appreciate your post but agree with Saul and bear that it would only be on topic if you continue to access each company and it’s prospects. I did a little digging on Huya and a few others because of the high revenue growth and comparatively lower P/S towards our other core SAAS holdings.

My girlfriend actually uses Yardi at her work, she works for Essex apartment communities and they use it daily, I can ask her tomorrow about her experience with it.

Huya and Sea I was disappointed to see they both have very low gross margins, and as Saul has constantly taught us, this equates to future potential earnings for the company. In comparison to ayx that has a gross margin around 90% right now.

I actually am interested in PAGS and have a small holding in it.
Also I was surprised to see STNE was not listed as they had 86% growth last quarter Y/Y and their gross margins are better at around 60%. I know both these companies are South American in an emerging market but hey Warren Buffett himself backed the stock from the beginning. I own small holdings in both companies as they focus on payment systems for the emerging and growing economy in Brazil and surrounding areas.
STNE is at a 9B market cap
219M in revenue and 119M in income. P/S is high at 43
PAGS is at a 13.6 market cap, growing slower but already has higher revenue and earnings numbers; 1.23 B in revenue and 280M in income. And P/S is only around 11.3 currently.
Both have been gaining a lot of traction lately in their share price daily.

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Inphanint, very much appreciate this useful information. The points you bring up are intriguing and it’s good to have some new stocks to consider, which was really the whole point of making that list.

Sounds like Saul wants us to stop this thread but if you want to start a new thread on one particular stock with some company analysis then it sounds like that would be all right for This board

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I was surprised and interested to see Pinterest on the list.