Neil’s post on LOGM got me thinking about the comparison with a similar company I prefer for long term market position at pretty much the same stage of its corporate lifecycle and identical market cap is Infoblox (BLOX).
http://finance.yahoo.com/q?s=BLOX
They are sitting at their 52 week high as of today and looking nicely placed. Forward P/E is high at 65 (a touch higher than LOGM’s forward P/E) but on a lower P/S at 5.6 vs 6.7 for LOGM). It’s latest Q growth rate is nowhere near LOGM’s but it has been growing more consistently at ~20% over recent years whilst LOGM’s growth has really just turned positive in the most recent year of quarterly numbers (admittedly in a big way).
Blox provide “DDI as a service” managing domain and IP address configuration and are at the intersect of cloud and security network appliances.
They just produced results growing revenues at 28%, beating estimates and upping guidance and are profitable on non GAAP basis.
The last 5Qs have produced continued YOY and QOQ growth, operating and net losses are passed their peak and are coming down…
Revenues:
Apr 14: $61.0m
Jul 14: $64.9m
Oct 14: $66.7m
Jan 15: $74.3m
Apr 15: $78.1m
Op Inc:
Apr 14: -$7.4m
Jul 14: -$9.3m
Oct 14: -$9.2m
Jan 15: -$6.6m
Apr 15: -$5.2m
Net Inc (GAAP):
Apr 14: -$7.4m
Jul 14: -$9.5m
Oct 14: -$10.2m (Non GAAP was +$3.8m or 0.07 eps)
Jan 15: -$7.0m (Non GAAP was +$5.3m or 0.09 eps)
Apr 15: -$5.1m (Non GAAP was +$7.2m or 0.12 eps)
I am reposting this as a separate posting for the board so that it doesn’t get lost in the LOGM discussion.
Cheers
Ant
Well Infoblox has continued to do the business since I posted this and are now firmly in profit so perhaps it could be considered a Saul like stock candidate…
The stock was hit hard after the last conf call and was even downgraded last week. There were questions over the refresh cycle. This has proved unfounded. Full year guidance was raised (to $370-380m 22.5% growth in Revs based expected 2nd half growth of 13% with margin of 10-12%) based on product cycle refresh tapering but expanded market opportunities in security (triple digit growth and cloud (double digit growth).
Latest results…
http://finance.yahoo.com/news/infoblox-reports-fiscal-first-…
•Product revenue grew 9.7% sequentially and 61.4% year-over-year
•Services revenue grew 6.2% sequentially and 22.6% year-over-year
•Non-GAAP gross margin grew to 81.2% compared to 79.9% in Q1’15
•Non-GAAP operating margin grew to 13.3% compared to 5.5% in Q1’15
•Non-GAAP net income grew 163.3% year-over-year to $7.8 million
•Cash flow from operations was $19.7 million compared to $12.3 million in Q1’15
•Cash, cash equivalents, and short term investments grew to $350 million compared to $282 million one year ago
Updated track record…
Revenues:
Jan 14: $60.9m
Apr 14: $61.0m
Jul 14: $64.9m
Oct 14: $66.7m
Jan 15: $74.3m
Apr 15: $78.1m
Jul 15: $87.0m
Oct 15: $94.0m
Net Inc (GAAP):
Jan 14: -$4.4m ((Non GAAP was +$6.6m or 0.11 eps)
Apr 14: -$7.4m ((Non GAAP was +$3.8m or 0.07 eps)
Jul 14: -$9.5m (Non GAAP was +$1.9m or 0.03 eps)
Oct 14: -$10.2m (Non GAAP was +$3.0m or 0.05 eps)
Jan 15: -$7.0m (Non GAAP was +$5.3m or 0.09 eps)
Apr 15: -$5.1m (Non GAAP was +$7.2m or 0.12 eps)
Jul 15: -$4.7m (Non GAAP was +$7.3m or 0.12 eps)
Oct 15: -$1.5m (Non GAAP was +$7.8m or 0.13 eps)
Cheers
Ant
4 Likes
BTW I put it into the 1YPEG xls and it produced an X in the candidate stock column FWIW.
Ant
Yes, they probably had a good quarter and the shorts are covering.
However, this company still looses money:
http://finance.yahoo.com/q?s=BLOX
I have hard times evaluating companies that are loosing money, as I have problem calculating their intrinsic value.
Too complicated for me, I’ll pass.
I’ll take a second look if and when they’ll become profitable.
1 Like
Hi Shukisasson - They are profitable on a non-GAAP basis (which is how Saul and most of us measure it) and have been for over 2 years and growing. The GAAP measure is about breakeven now and should grow into positive territory going forwards.
Ant
1 Like
Ant, please note the 1ypeg spreadsheet has $.90 rather than the $.09 in your previous post; inflating earning growth rate from 77% to >200%.
Drake54
Got it Drake good catch - thanks. It still posts an x in revs and saul stock columns but not in earnings.
Ant
Infoblox just reported another healthy growth in numbers for the latest quarter with revs up 29% and 100% growth in non GAAP earnings and profitability on a GAAP basis too. As usual street didn’t like the guidance so the stock got killed. This is looking like real value now.
http://seekingalpha.com/pr/16319756-infoblox-reports-fiscal-…
Q2’16 Financial Highlights
•Total net revenue grew 29% year-over-year to $96 million
•Products and licenses revenue grew 36% year-over-year to $52 million
•Services revenue grew 22% year-over-year to $44 million
•Non-GAAP gross margin increased to 81.9% compared to 80.1% in Q2’15
•Non-GAAP operating margin grew to 16.8% compared to 8.2% in Q2’15
•Non-GAAP net income grew 92% year-over-year to $10 million
•Cash flow from operations was $25 million compared to $15 million in Q2’15
I have updated the xls. 1YPEG is 0.24
Trailing performance looks as follows…
Revenues:
Jan 14: $60.9m
Apr 14: $61.0m
Jul 14: $64.9m
Oct 14: $66.7m
Jan 15: $74.3m
Apr 15: $78.1m
Jul 15: $87.0m
Oct 15: $94.0m
Jan 16: $96.0m
Net Inc (GAAP):
Jan 14: -$4.4m ((Non GAAP was +$6.6m or 0.11 eps)
Apr 14: -$7.4m ((Non GAAP was +$3.8m or 0.07 eps)
Jul 14: -$9.5m (Non GAAP was +$1.9m or 0.03 eps)
Oct 14: -$10.2m (Non GAAP was +$3.0m or 0.05 eps)
Jan 15: -$7.0m (Non GAAP was +$5.3m or 0.09 eps)
Apr 15: -$5.1m (Non GAAP was +$7.2m or 0.12 eps)
Jul 15: -$4.7m (Non GAAP was +$7.3m or 0.12 eps)
Oct 15: -$1.5m (Non GAAP was +$7.8m or 0.13 eps)
Jan 16: +$4m (Non GAAP was +$10.0m or 0.17 eps)
Ant
2 Likes
Ant,
They are guiding for lower sales sequentially next quarter but the quarters you showed all appear to increase sequentially.
Any idea what is going on?
Seasonality doesn’t appear to be the culprit.