On Tuesday, Cortex reported its Q3, 2018 results. The company earned $600,000 on revenue of $3.1-million, a topline that was up six per cent over the same period last year.
“I believe these results are just the beginning of the momentum that we are building at Cortex,” CEO Joel Leetzow said. “Our team has remained focused on helping our customers to deliver their own results and savings with our ever-expanding service. We have never helped as many suppliers get paid as quickly as we have in this past quarter and our recently released payments business is now one of the fastest growing income lines at Cortex. I could not be more excited with the trajectory that Cortex is on.”
Leung notes that both Cortex’s top and bottom lines came in slightly better than he had expected. He says the company is in an expansive mood.
“During the conference call, the company indicated that with the business now stabilized (as evidenced by its strong margin profile), it is now more aggressively pursuing strategies to augment growth organically, through acquisitions, and new product introductions,” Leung says. “While management was light on details (for competitive reasons), it was very bullish on its pipeline and near-term opportunities. It also maintained its $20M revenue run-rate aspiration by FY20 (ending July 2020).”
In a research update to clients today, Leung maintained his “Buy” rating and twelve month price target of $6.00 on Cortex, implying a return of 50 per cent at the time of publication.
The analyst thinks CBX will generate EBITDA of $2.5-million on revenue of $12.4-million in fiscal 2018. He expects those numbers will improve to EBITDA of $3.0-million on a topline of $13.9-million the following year.