Rhipe: Patience is a virtue

TL;DR

Right Limited, a Sydney-based business, has shown impressive growth in revenue and profitability, with a significant increase in new Office 365 subscriptions. Despite a lower share price, the business remains debt-free and focused on expanding its suite of products and entering new markets.

Transcript

g'day and welcome to this week's video my name is robert gowdy from consulting private wealth and this week we're going to have a quick chat about a business that we've followed and liked for many years and is widely held across our client base and that's right which is based in sydney and ran by dominic o'halloran so they came out with a um i supp... Read More

Key Insights

• 🗯️ Right Limited adds around 16,000 new Office 365 subscriptions every month, showcasing its strong market presence and customer demand.
• 🈷️ The company has achieved a 15% increase in total revenue over the past nine months, amounting to approximately $35 million.
• 😮 Profitability has risen by around 30%, reaching $13.2 million, and is expected to surpass $18 million by the end of the financial year.
• 🈺 Right Limited's strategy includes acquiring complementary businesses to expand product offerings and entering new markets, notably their joint venture in Japan.
• 😘 Despite the lower share price, the company remains debt-free, has cash reserves, and focuses on growing recurring earnings.
• 🌱 Investors should prioritize long-term value creation and trust in the management's ability to execute strategic plans.
• 👻 Patience is crucial in allowing Right Limited to continue building its business and expanding its recurring revenue.

Questions & Answers

Q: How has Right Limited been performing in terms of revenue and profitability?

Right Limited has shown impressive growth, with a 15% increase in total revenue over the past nine months, reaching approximately $35 million. Profitability has also witnessed a significant rise, reaching $13.2 million, and is projected to exceed $18 million by the end of the financial year.

Q: How does Right Limited continue to expand its business?

Right Limited has been acquiring complementary businesses consistently over the past few years, expanding its product offerings. Additionally, they have successfully established a joint venture in Japan. These strategic moves have required capital but have allowed Right Limited to enter new markets and increase its recurring revenue.

Q: Why has the share price of Right Limited not grown as expected?

Despite the lower share price, Right Limited remains a strong investment opportunity. The company is debt-free, has cash reserves, and consistently grows its earnings, many of which are recurring. Patience is crucial in letting the management execute their strategic plans and maximize long-term value.

Q: What should investors focus on when evaluating Right Limited's performance?

Investors should focus on the growing revenue and profitability of the business rather than short-term fluctuations in share price. Right Limited's track record, debt-free status, and expanding suite of products position it well for future success.

Summary & Key Takeaways

• Right Limited has experienced strong performance, adding around 16,000 new Office 365 subscriptions every month.

• Total revenue growth over the past nine months reached 15%, amounting to approximately $35 million.

• Profitability has increased by around 30%, reaching $13.2 million, and is expected to exceed $18 million by the end of the financial year.