My favorite part is the operational leverage:
- The business model contains strong inherent operational leverage. Revenue per employee went from $277K in Q3 2017 to $492K per employee in Q3 2018. It's almost like hooking customers up and collecting the rent. The acquisitions will bring this figure down again, but that's temporary.
And that operational leverage kicked in pretty early, here from a 2017 article:
Revenues have exceeded analyst expectations for a few quarters in a row at Pareteum. Revenue backlog jumped 115% from $60 million at the end of Q2 2017 to a record breaking $129 million on November 30, 2017. A key performance measure of management’s effectiveness, revenue per employee increased to a record $222,139 in Q3 2017 marking a 4-fold increase over Q4 2015. Positive adjusted EBITDA was achieved for the first nine months of 2017, while the company is approaching break-even-in both EBITDA and net income. Gross margins that have recently been in the 70% range, hit 77% in Q3 2017, and are driving the company towards profitability. The beauty of software-based cloud communications solutions is superior economics for Pareteum, as well as for its growing list of customers.
Basically, it's like hooking customers up and then collecting the dues.