Q: Please comment on their earnings and why you feel the shares pulled back on the results when it appeared like a good quarter.
5i Research Answer:
VHI reported record revenue of $9.4 million for 1Q22, beating market estimates of $8.8 million. The gross margin expanded from 76% in 1Q21 to 84% in 1Q22. Annual recurring revenue grew by 9% quarter-over-quarter, and the adjusted EBITDA margin improved from 16% in 1Q21 to 32% in 1Q22. This was a positive quarter, and VHI beat market estimates by wide margins. It is a smaller company in a volatile market, so we would not read too closely into shorter-term price moves.