Dye & Durham Posts 300% Revenue Growth In 3Q: Shares Jump 6%
Shares of Dye & Durham (DND) rose as much as 6% in early trading Wednesday after the provider of cloud-based software and technology solutions for legal and business professionals announced strong revenue growth in its third quarter.
The company’s revenue for 3Q 2021 came in at C$68.9 million, increasing 300% from the prior-year quarter.
However, the company reported a net loss of C$10.6 million in the quarter ended March 31, worse than the net loss of C$1.3 million for the same quarter in fiscal 2020. Financial costs related to recent financings are mainly responsible for the rise in the net loss. Adjusted EBITDA amounted to C$37.6 million in 3Q 2021, up 267% from C$10.3 million in 3Q 2020.
Dye & Durham ended the quarter with access to over C$1 billion of capital which will be used to execute its strategy of growth through acquisitions.
Dye & Durham’s CEO Matt Proud said, “The Company’s strong financial performance and growth in the third quarter demonstrate our ability to successfully execute on our acquisition strategy. During the quarter we made significant progress on integration and realizing synergies from recent acquisitions, which we expect will continue to drive even stronger financial results in the current quarter.”(See Dye & Durham stock analysis on TipRanks.)
Last week, CIBC analyst Stephanie Price started coverage of DND with a Hold rating and a C$47.00 price target (17.5% upside potential).
The rest of the Street is cautiously optimistic on DND with a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average analyst price target of C$55.00 implies a 37.5% upside potential from current levels. Shares have increased by 85% over the past six months.
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