Dye & Durham (DND) experienced strong revenue growth and swung to a profit in the third quarter of 2021.
The company provides cloud-based software solutions to business and legal professionals. (See Insiders’ Hot Stocks on TipRanks)
Revenue & Earnings
Dye & Durham’s revenue for Q1 2022 came in at C$112.6 million, an increase of 414% from the prior-year quarter. Growth is mainly attributable to the increase in revenues from recent acquisitions made in the last 12 months and the realization of revenue synergies.
Meanwhile, the company reported a net income of C$22.1 million in the quarter ended September 30, an increase of C$37.1 million over the same period last year. Adjusted EBITDA amounted to C$62.4 million in Q1 2022, up 398% from Q1 2021.
Dye & Durham CEO Matt Proud said, “Our strong first quarter results demonstrate the scale and the pace of growth that the Company has established. We have a track record of out-performance that proves the strength of our business model. With our first quarter results, we are tracking an annualized run-rate of nearly C$250 million in Adjusted EBITDA.
“With the recent recapitalization and our robust set of pipeline opportunities, we intend to continue executing on our “Build to a Billion” growth strategy to drive further growth.”
The company also declared a quarterly dividend of C$0.01875 per share payable to shareholders of record on December 9, 2021, payable on December 16, 2021.
Analyst Recommendation
On October 14, CIBC analyst Stephanie Price reiterated a Hold rating on DND and lowered its price target to C$44 (from C$50.50). This implies 15.4% upside potential.
The rest of the Street is bullish on DND with a Strong Buy consensus rating based on four Buys and one Hold. The average Dye & Durham price target of C$53 implies 39% upside potential to current levels.
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