Analysis of company financials is the traditional starting point of equity analysis. At the very least, it is a necessary tool to enable us to measure the things investors are interested in (cash flow, returns, etc) and to use these measurements to compare multiple investment opportunities.
In our top down review of a selection of small SaaS companies we noted that on face value metrics for Updater ($UPD) looked good. Revenue growth, historic and forecast, was parabolic and this was being delivered with modest cash burn relative to peers. However, the composition of this revenue growth is the key for further analysis. [...]