AVPT, AORT and DCBO Still Buys After Reporting
AvePoint (AVPT) stock has jumped today following a very good quarterly report yesterday. Revenue grew 22% to $88.8 million (beating by $5.5 million) while adjusted EPS of $0.06 beat by a penny. The company expects to be profitable on a GAAP basis in 2025, which is a significant positive achievement. There may be a dip in profit margin next quarter (Q4), however, due to seasonal marketing spend. Demand for the company’s SaaS offering is very strong, driven by migration from on-prem, gen AI, regulatory compliance and data protection needs. Gross customer retention trends are good, improving to 88% and on target to reach 90% in the coming years. Everything looks good here and we should get 2025 guidance at the time of the Q4 2024 report in February. Technically, I’m keeping AVPT at buy but suggesting only small adds to positions here and, probably better, to give the stock a few days to settle down before adding. We’re up about 30%. BUY
Artivion (AORT) posted another solid quarter and while shares aren’t up on the day the big-picture story here remains very good. Revenue grew by 9% to $95.8 million (beating by $1 million) while adjusted EPS improved to $0.12 from $0.02 in the year-ago quarter and beat by $0.11. Management continues to expect double-digit revenue growth, with EBITDA profit growing at twice the pace of revenue, with EBITDA margins expanding. That’s bullish, as it shows more of each dollar in revenue flowing to the bottom line.
Here are the bullet points on the various product categories:
- Aortic stent grafts posted double-digit growth globally.
- On-X valve gained market share globally, especially in the U.S. due to positive trial results.
- SynerGraft growth held back by donation availability.
- NEXUS aortic arch stent graft system trial data looking good – approval late in 2026 expected.
- AMDS FDA approval expected at the end of 2025, opening a $150 million market.
- BioGlue in China to launch, expected to ramp up after 2025.
Keeping AORT at buy. We’re up about 20%. BUY
Docebo (DCBO) stock has officially broken out above 47 and is running toward overhead resistance from last March at 56. The company reported before the market opened this morning that Q3 revenue grew by 19.2% to $55.4 million (a $1.3 million beat) and adjusted EPS grew 80% to $0.27 (a $0.03 beat). It bears highlighting that this is a $1.6 billion market cap software company on pace to deliver EPS of $0.94 this year. That would represent EPS growth of 50%, more than twice the expected 18.7% pace of revenue growth. Impressive.
On this morning’s call management talked about how the macroenvironment is still challenging but how customer retention efforts and partnerships are helping DCBO keep growth alive. The company is working to secure FedRAMP certification this year and launching AI authoring and other advanced technologies. It will also look at pricing strategies (code for prices are going up), push harder into the enterprise segment and internationally. Great quarter, guys. BUY
Last but not least, I’m curious to hear how your earnings season is going, and how you feel about the market and our portfolio of stocks following the presidential election. Feel free to shoot me an email with any thoughts. I can be reached at tyler@cabotwealth.com.
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