I know some people on the board are still invested in UBNT so I just thought I’d leave a little comment.
Revenues looked like this:
2012: xxx xxx 065 075
2013: 083 101 130 138
2014: 148 156 150 153
2015: 147
They were growing like mad until the last quarter of 2013, and then they just stopped!!! Take the time to look at them. Why? I don’t know, but the last five quarters are flat. And whether they were up to analysts’ expectations is irrelevant, this last quarter’s revenues were down sequentially and flat with the year before.
Adjusted earnings looked like this:
Revenues looked like this:
2012: xx xx 15 20
2013: 24 33 46 48
2014: 50 56 48 53
2015: 47
They were growing like mad until the third quarter of 2013, and then they just stopped!!! Why? I don’t know, but the last seven quarters are flat. Take the time to look at them. And whether they were up to analysts’ expectations is irrelevant, this last quarter’s revenues were down sequentially and from year before. In fact they are the lowest they’ve been in six quarters.
I’d suggest that there may be better places for your money.
Saul
14 Likes
They were growing like mad until the third quarter of 2013, and then they just stopped!!! Why? I don’t know, but the last seven quarters are flat. Take the time to look at them. And whether they were up to analysts’ expectations is irrelevant, this last quarter’s revenues were down sequentially and from year before. In fact they are the lowest they’ve been in six quarters.
I sold my UBNT as well. But I think one needs to look at their 2 business lines separately. Their Enterprise business is still growing revenue at something like 50% while their Service Provider business is declining. Their SP business is larger. One question from the prior quarter was if their SP business would start growing again after the launch of several new products. So far not. The next question: at what point does the Enterprise business get large enough so we can value the company’s growth on that business alone?
Chris
6 Likes
I bought my first UBNT in March, 2013. Later that summer, UBNT won the Chinese court case and shut down the counterfeiting. I think the 2012 and 2013 numbers were artificially low and the first few quarters of increase were helped a lot (although the lost sales were mostly in South America, Middle East and China, and the U.S. has been a big market share and probably not affected by the counterfeiting). I think another factor was picking the low hanging fruit with the initial design using essentially “indoor” equipment. The addition of the enterprise line might say something about the growth limitation of the service providers market.
KC
1 Like
Thanks Saul. I too got out two weeks back. Numbers were not showing a good picture.
1 Like