Q2 earnings out


Second Quarter Financial Highlights

Revenues of $138.4 million, up 85% year-over-year
GAAP net income of $41.8 million, up 135% year-over-year
Non-GAAP operating profitability of $48.5 million, up 131% year-over-year
GAAP Diluted EPS of $0.47, up 135% year-over-year and non-GAAP diluted EPS of $0.48
Average days sales outstanding (DSOs) declined slightly to 24 days, the lowest in the company’s history
$27.6 million in net cash provided by operating activities

After the earnings the trailing PE moved down from 34.5 to 28.8.
If they hit their guidance of 47 to 51 cents per share next quarter, the PE will be down to between 24.4 (low end guidance) and 23.9 (high end guidance).

The price seems like a bargain here assuming their rapid growth continues. The stock price was as high as $45.39 today (up about 10%) but managed to only end up 3.7% despite a stellar financial result are increased guidance. Perhaps investors are scared because a large portion of their sales and growth comes from emerging markets. I tend to think that people in emerging markets will continue to demand and pay for internet access and that UBNT will continue to sell well into these markets. The trouble that some emerging markets are experiencing with their equity markets, currencies, etc. shouldn’t impact UBNT sales into those markets. The market seems to be giving us an opportunity to buy UBNT at a discount.