* GOGO - Is This MOMO Firm Turning the Corner... Or is it "Much Ado?" (3 Charts)

Tweet

Follow @OphirGottlieb

This visualization is provided by: Capital Market Laboratories (join the queue for a trial)

Conclusion
GOGO is losing money while revenue is growing... pretty much the status quo for growth and MOMO companies right now. But, there are a couple of charts which may point to a turn around; a different set of circumstances that make GOGO look different from the group. 

This isn't meant as a definitive research piece and it certainly isn't complete. But in three charts, we go from knowing very little, to knowing... considerably more.




Net Income Margin %
That bad news is that net income margin (and therefore net income) is negative.  But, we'd have to be blind to not see the improving trend.  Net income margin % loss has been cut in half.



Revenue (TTM) to Net Income (TTM)
On the top (in blue bars) we see revenue, and a rather impressive and consistent 152% growth in the last few years.  On the bottom (the orange line) we see net income. There has been a flattening of the curve (losses) as revenue increases, and then a rather sudden jump up (reduction in losses).



Gross Margin %
There is a counter weight to all of this information (aside form the fact that the firm is losing money), and that's gross margin %.  Possibly the most compelling part of the Internet Services & Software industry is the incredibly high gross margin % (see YELP as an example).  GOGO has seen its gross margin % drop as revenue has grown.  The drop isn't huge, but it is certainly not trivial and it is certainly consistent.


More on GOGO in future posts.

Knowledge is power. Be Powerful.

Capital Market Laboratories: Get Notified When CML Light Goes Live

This is trade analysis, not a recommendation.

Follow @OphirGottlieb

Tweet


Legal Stuff:
Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements.

The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. I am not engaged in rendering any legal or professional services by placing these general informational materials on this website.

I specifically disclaim any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if I have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.

I make no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that I endorse, sponsor, promote or am affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated.