MP1 +9.74%: In a morning report around 10 days ago (click here) we discussed MP1 saying the following….The current issue is that there hasn’t been a big COVID bump as many other technology companies have enjoyed so growth is okay, but it hasn’t shot the lights out. Overlay that with rising bond yields which creates a headwind for high value growth and MP1 has struggled. Looking forward though, the investments they’ve been making in R&D and new products in recent times, the more than $100m cash on their balance sheet and the hiring of a new Head of Revenue globally points to better growth ahead.
Today they delivered a strong quarterly update where growth for the quarter was ahead of expectations. The key number is around underlying monthly reoccurring revenue (MRR) which increased by 10% to $6.8m while there is very good momentum going into Q4. They remain on track (as previously stated) to achieve EBITDA breakeven by June of 2021. All up, a good result from MP1
We are bullish MP1
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