Question · Q1 2026
Alexander Markgraf asked about the 15x EBITDA multiple paid for the recent acquisition, noting it was outside the company's historical sweet spot, and whether more such unique opportunities exist. He also inquired if product investments were proceeding as planned and yielding benefits in the sales pipeline.
Answer
Chief Financial Officer Geoff Smith justified the higher multiple by the acquired company's 20%+ organic growth and 50%+ margins, contrasting it with the typical 10% growth of past acquisitions. President Rick Stanford added that while this was a 'unicorn' deal, the current pipeline is back within their 7x-10x sweet spot. Mr. Smith confirmed that product investments were going to plan, aligning with the previously introduced acceleration investment strategy.
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