2) A comparatively low EV/TTM sales of 3.5. This compares to what I call peers (SHOP, MULE, HUBS, NEWR, TLND, TWLO) what had ratios of 17.3, 14.3, 9.1, 8.7, 8.7, and 8.1. The average difference is about 3x!
Another BIG negative of HDP is the level of stock based compensation that they gave out. In FY2016, they gave out $98.8M. Then in Q1 2017, they gave out another $23.4M. In the last 4 quarters they gave out a total of $92.8M. They are the smallest company in the peer group with a market cap of $776M so their stock-based comp is quite a massive dilution. To put this in perspective, SHOP has been criticized by some on this board as having high stock based comp. Now SHOP has a market cap of $8.1B which is more than 10 times that of HDP yet SHOP’s stock based comp in the past 12 months was $24.9M compared to HDP’s $92.9M. So adjusted for size HDP is handing out about 40 times more stock than SHOP!!!