Have I ever looked at Reddit? No. Let's do this. This will be fun. Let's uh let's see this. I've never even looked at it. Um let's take a look. Um, so first things first, right?
Let's just pull up the financials income statement. Revenue is growing nicely. 2.2 billion up. Wow. 70% 60%. Revenue is growing and it's is growing at an accelerating rate. That is that is really interesting. um gross profits a digital company but 90% gross profit.
Okay, thank you for that R&D. So they made $2 billion last year fiscal year December. So we've got another three four months, excuse me, another six months before we get another result.
They made $2 billion of gross profit R&D relatively. Well, that's growing. Yeah, they spent $780 million in R&D sing. This what you want. This is this is where management takes their they takes their cut.
You want to see how much of that cut they're they're taking. So, five six years ago. Oop, sorry, that's that's SGNA. This is this is management here. So, six years ago, managers was running this business on $43 million of comp.
Now, that comp is $230 million. That's what 8x growth rate in management comp in six years. That's very high. But then again, their business, the revenue went 10x up from 200 million to 2.2 billion.
So, got to give credit where where it's due. That's phenomenal scaling. Go for it, guys. Take take the cash. Uh selling and marketing expense. So, now they're paying Hang on a second.
Let's see what that what that looks like. Uh pull up a calculator and let's just take a look and see. So, they're paid last year. selling expense was here right here 500 million 500 divided by 22000 they spent 22% of their revenue on marketing we'll [clears throat] go back four years 4 years uh it was 222 divided by 666 great number all right uh not great number was a weird number uh 33% so they're spending less as a percentage of revenue revenue on sales and marketing expense.
Even though this number is going up, it's less of a percent of revenue. Okay, I buy that. And they made [clears throat] money. They made money for the first time. They were unable to make money the last, I guess, as far back as this data goes, they finally made money. 442 million.
It's a decent margin. What is that? 442 / 2200 20%. 20% operating income margin that's actually be higher than that. Even that's 450 uh 45720%. I guess they have little depreciation.
Interesting. Kind of neat company. I don't know how defensible though it is. like how do you think about their positioning in the market, right? What what else can they do? Is it is it add revenue?
How do they how do they grow their how are they growing?